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US may consider banning connected-car tech on Chinese cars Here’s why

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  • Concerns about spying and data theft have grown, and more and more Chinese-made cars are arriving on US shores.
File photo used for representational purposes.

The United States is considering the possibility of banning the use of connected-car technology in Chinese vehicles on its roads. In the most severe cases, the country may even ban the use of such technology altogether. At the root of such a possible decision is the fear that Chinese vehicles with connected car technology pose a very serious security risk.

US Commerce Secretary Gina Raimondo underlined the Joe Biden administration’s serious intention to investigate the potential of Chinese connected cars posing a security threat on American roads. She also told reporters that such vehicles should be banned from being sold and operated in the country. She is calling for the most serious action. “We have to digest all the data and then decide what action we want to take,” she told Reuters. “We can take extreme measures, which means no Chinese connected vehicles in the United States or look for mitigation.”

The two biggest Chinese EV players – BYD and Nio – are not currently present in the US market. But among the models that could be affected is the Geely-owned Volvo EX30 which is set to go on sale here later this year. There is also a Polestar 2 sedan that is already available to American buyers.

Tit of tit?

US EV giant Tesla faced similar concerns in China where authorities told owners not to park these vehicles near or near sensitive locations. CEO Elon Musk assured officials in China that any data captured by Tesla vehicles in China is stored in China. The company won the right to access its cars all over the country.

Chinese authorities have now reacted strongly to any ban or the possibility of bans on Chinese brands with connected-car technology in the US. US officials have been accused of playing politics within the confines of the automotive industry, and moving in that direction would affect fair competition and disrupt supply chains.

Date of first publication: 10 May 2024, 09:05 AM IST

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