U.S. Pushes Mexico to Examine Chinese Electric Vehicles Amid Concerns Regarding National Security
In a recent development, US lawmakers have raised concerns over the potential entry of Chinese-made vehicles into the American market, citing national security risks and the possibility of bypassing US tariffs.
The US fears that China, a strategic and economic rival, could use data collected by connected vehicles for surveillance or control them remotely via the internet and navigation systems. This concern stems from the fact that all modern cars and trucks are equipped with onboard networking hardware that provides internet access and allows them to share data.
Chinese automakers have made inroads into the Mexican market, and one of the companies, BYD, is planning to build a factory in Mexico. This factory, if built, could potentially allow Chinese companies to bypass US tariffs on their electric vehicles. In response to this, the US lawmakers' letter points out this potential bypassing of US tariffs as a concern.
The proposal, led by US lawmakers Elissa Slotkin and Sherrod Brown, would effectively block Chinese cars and trucks from entering the US market. It would also prohibit new vehicles produced in Mexico by Chinese automakers from entering the US market.
The US democratic congress members have urged Claudia Sheinbaum, the President-Elect of Mexico, to address national security issues related to internet-connected vehicles produced in Mexico by Chinese automakers. The exact date of a potential visit of a Mexican delegation to the United States to discuss these concerns is not yet confirmed.
It is important to note that only four Chinese light vehicles are currently being sold in the United States. However, the US lawmakers believe that this dataset, under the control of the Chinese Communist Party, poses a national security threat.
In a separate move, Joe Biden, the US President, has proposed banning Chinese software and hardware in connected vehicles on American roads. In 2022, Congress passed a law to prevent Chinese-made electric vehicles from receiving tax credits. The Biden administration has also raised tariffs on Chinese-made electric vehicles by 100%.
China has rejected the US criticism of its cars in the US market, stating that the measure lacks a factual basis, violates principles of market economy, and is protectionist.
This issue highlights the ongoing tension between the US and China in the global market, particularly in the automotive sector. As the world continues to move towards more connected and electric vehicles, these concerns are likely to persist and potentially escalate.
