China’s car gadgets under scrutiny as U.S. probes espionage risks

The United States has long been engaged in geopolitical and trade disputes with China, but the latest concern involves high-tech gadgets manufactured in China and installed in U.S. cars. These gadgets—such as cameras, microphones, GPS trackers, and advanced software—have raised alarm among top U.S. agencies, which fear they could be used for espionage, cyberattacks, and data theft. In response, the Biden administration is considering a complete ban on technology from adversary nations like China and Russia.

Imagine someone remotely controlling your car from another country—this is not a scene from a movie but a real possibility, according to U.S. intelligence agencies. The advanced software and hardware found in Chinese-made vehicles could potentially be manipulated to allow hackers to take control of cars on American roads or even use them as tools to send sensitive information back to Beijing or Moscow. As China becomes a leading player in the electric vehicle market, its influence in the U.S. grows, especially through smart cars and related gadgets.

U.S. Secretary of Commerce Gina Raimondo expressed concern over the risk posed by Chinese and Russian technologies in American cars. While she acknowledged that the current number of vehicles with such gadgets is low, the government is taking proactive steps to address the security threat. "Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet," 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."

China responded angrily to the U.S. announcement, accusing Washington of over-exaggerating national security concerns and unfairly targeting Chinese companies. Lin Jian, a spokesman for China’s Foreign Ministry, condemned the U.S. for expanding its concept of national security and taking discriminatory actions. "China opposes the U.S.’s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products," Lin said. "We urge the U.S. to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises."

The U.S. government began investigating the potential threats posed by smart cars that connect to the internet in February of this year. After assessing the risks associated with foreign-made technology, particularly from China and Russia, a ban is now being considered. Additionally, restrictions on non-native software could take effect by 2027, while hardware regulations may be implemented three years later to give automakers time to adjust their supply chains.

John Bozzella, President and CEO of the Alliance for Automotive Innovation, acknowledged that while Chinese-made technology in U.S. cars is limited, the proposed rules may pose challenges for car manufacturers. "You can’t just flip a switch and change the world’s most complex supply chain overnight," he said. He added that the timeline provided by the proposed rule may be too short for some manufacturers to make the necessary changes. Bozzella’s organization plans to continue providing input as the final regulations are developed.

The U.S. is tightening regulations for car manufacturers, as most of them use Chinese-made gadgets. However, this is no reason to give Chinese car manufacturers any leeway, considering Beijing’s shady past when it comes to espionage and similar activities.

For now, the proposal to ban certain hardware and software made in China and Russia from cars, trucks, and buses in the U.S. is under consideration, as Washington works toward limiting China's presence in the car manufacturing supply chain. In a similar vein, the Biden administration had previously raised tariffs on electric cars, batteries for electric vehicles, and a range of other items. It has also separately banned the import of Chinese-made cargo cranes due to cybersecurity risks.