American President Joe Biden has accused China of using “unfair practices” to undercut legacy vehicle manufacturers, citing national security risks.
In a White House briefing earlier today, President Biden addressed China and the impact the nation was having on the automotive industry in the United States.
He unveiled “unprecedented actions” to ensure that cars on US roads from countries of concern, including China, do not undermine national security.
Biden has directed the Secretary of Commerce Gina Raimondo to conduct an investigation into connected vehicles.
Joe Biden announced a new investigation into Chinese vehicles in the US
REUTERS/GETTY
This will include vehicles which contain technology from countries of concern, adding that the US would “take action to respond to the risks”.
In a White House statement, the 81-year-old said American automakers and workers are the best in the world and praised the “Big Three” – referring to General Motors, Stellantis and Ford Motor Company.
He said: “China is determined to dominate the future of the auto market, including by using unfair practices.
“China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.
“Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China.”
He also warned that any connected vehicles could have the capability for people to remotely access them or even disable the vehicles.
Connected cars are able to interact with phones, navigation systems, critical infrastructure and the companies that manufacture the vehicles.
Biden, who will likely face off against Donald Trump in the upcoming Presidential election in November, highlighted how China imposes restrictions on American and other foreign vehicles operating.
The 46th President questioned why connected vehicles from China should be allowed to operate in the United States without safeguards.
Many Chinese companies, especially those which produce electric vehicles, have taken steps to spread their brand across the world, including BYD, Nio and Xpeng.
BYD – which stands for Build Your Dreams – sold more electric vehicles than Elon Musk’s Tesla in the final three months of 2023 with 526,000 compared to 484,500 for the US brand.
This marked the first quarter where BYD’s EV sales had outpaced Tesla’s, with experts viewing this as a major market shift.
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BYD is one of the largest Chinese vehicle manufacturers
REUTERS
Joe Biden ended the statement, saying: “As President, I vowed to do right by auto workers and middle-class families that depend on the auto industry for jobs.
“With this and other actions, we’re going to make sure the future of the auto industry will be made here in America with American workers.”