Biden calls out China and Russia as threats to America's roadways
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The White House bluntly identified China and Russia by name as threats to American roads and drivers this week.
Specifically, the brief highlighted a proposed rule change within the Department of Commerce set to ban all sale and import of ‘connected’ vehicles from these two countries, as well as components and hardware made within them even if used in other carmaker’s products.
https://federal register.gov/d/2024-21903
A shadow ban on all Chinese cars?
The list of to-be-outlawed technology and components is extensive. While the full report can be found on the Department of Commerce notice, the breakdown by the White House highlighted systems which could control or correct vehicle movement, any data collection on driver and/or passengers, all cameras, sensors, autonomous driving software, and anything which could record and/or send information about American infrastructure.
That’s a lot of wiggle room.
Whether or not the intention is to ban all Chinese cars outright, it certainly could be the outcome, depending on how these terms are interpreted.
Consider just one quoted portion of the proposal, which defines the scope of who and what could be affected:
"Systems… designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.”
(A model poses at BYD during 2024 Wuhan International Auto Show.Wang HE/Getty Images)
Made in China’ may become a liability
Most of the state-owned Chinese companies and domestic start-ups heavily dependent on CCP subsidies and beholden to its good graces will be implicated on sight.
Questions for Volvo, Polestar, and more
There is also the question, however, of non-Chinese origins companies which have either been bought out, like Volvo and Polestar, or are publicly traded and cannot know for sure some or even a large amount of those shares are not owned by China or Russia in a way that subjects them to this rule.
Even more confusing, pretty much any manufacturer doing business in China needs to accept 50% ownership of the business, at least the part that is in the country proper, by the CCP.
US Commerce Secretary Gina Raimondo, said in a statement: “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the
privacy of U.S. citizens.
To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”
Unsurprisingly, the official folks from Beijing aren’t happy about the news. In a statement, a spokesperson for the Chinese ministry of commerce said: “The US practice has no factual basis, violates the principles of market economy and fair competition, and is a typical protectionist act.
"China urges the United States to stop its wrong practice of generalising national security, immediately revoke the relevant restrictions, and stop its unreasonable suppression of Chinese companies.”
"China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies," it added.
Ref: Biden calls out China and Russia as threats to America's roadways (autoblog, topgear, federalregister.gov)
Photo Credit- Wang HE/Getty Images
