WASHINGTON, May 8 (Reuters) - The U.S. could take
"extreme action" and ban Chinese connected vehicles or impose
restrictions on them, Commerce Secretary Gina Raimondo said on
Wednesday, in the first indication a ban could be on the table
after a national security investigation.
The Commerce Department is reviewing public comments that
were due by April 30, Raimondo told Reuters, on a probe the
Biden administration launched in February into whether Chinese
vehicle imports pose national security risks.
"We have to digest all the data and then figure out what
action that we want to take," Raimondo said without detailing a
timeline. "We could take extreme action, which is to say no
Chinese connected vehicles in the United States or look for
mitigation" including safeguards, guardrails or other
requirements.
The White House said in February the Commerce probe was
being opened because vehicles "collect large amounts of
sensitive data on their drivers and passengers (and) regularly
use their cameras and sensors to record detailed information on
U.S. infrastructure."
White House officials told reporters in February it
was too early to say what action
might be taken on connected Chinese vehicles.
Raimondo said at a U.S. House of Representatives hearing
she was concerned about Chinese connected vehicles that "could
be collecting massive amounts of data on Americans, who they
are, what they say in their car, where they go to, their
patterns of driving." She added the United States needs "to take
the threat much more seriously" of Chinese connected vehicles
and other tech issues.
President Joe Biden has repeatedly said he will take action
to prevent a flood of Chinese vehicle imports.
There are relatively few Chinese-made light duty vehicles
being imported into the United States.
In comments to the Commerce Department, automakers
highlighted it may be difficult to overhaul their technology
systems to ease national security concerns.
The Alliance for Automotive Innovation, a trade group
representing General Motors ( GM ), Toyota ( TM ), Volkswagen
and nearly all major automakers, said in an April 30
filing automakers are committed to developing a framework for
information and communications technology and services systems
in connected vehicles that appropriately mitigates the risks
associated with Chinese designed systems.
But they warned vehicle systems "including their
hardware and software components, undergo extensive
pre-production engineering, testing, and validation processes
and, in general, cannot be easily swapped with systems or
components from a different supplier."
The government of South Korea in a separate filing said
the Korean automotive industry "expresses concerns about the
broad scope of the investigation into connected vehicle supply
chains, uncertainties surrounding the scope of potential
regulatory targets and the timing of the implementation, all of
which may lead to significant burdens on the industry."
Senate Banking Committee Sherrod Brown said on Wednesday
he had urged Commerce in a filing "to ban all Chinese
internet-connected vehicles and smart vehicle technology that is
designed, developed, manufactured, or supplied from China."
The Biden administration is separately considering imposing
new tariffs on Chinese-made vehicles and officials face new
pressure to restrict Chinese electric vehicle imports from
Mexico.
The Chinese foreign ministry in March said Chinese cars
were popular globally not because of "so-called unfair
practices" but because they had emerged out of fierce market
competition and were technologically innovative.
In November, a bipartisan group of U.S. lawmakers raised
alarms about Chinese companies collecting and handling sensitive
data while testing autonomous vehicles in the United States.