Biden administration may restrict imports of Chinese EVs and their parts no matter where they are built

From Fortune:

The Biden administration considers new restrictions on imports of Chinese smart cars and related components to address data security concerns. They may apply to vehicles and parts regardless of where they’re assembled and are due to concerns over troves of data collected by connected and autonomous vehicles.

US officials seek to address data security concerns and data privacy, considering possible adjustments to a 27.5% tariff on Chinese EVs originally imposed by Trump. Electric vehicles collect vast data, including personal information, raising concerns that data could be accessed by China. Privacy-focused executive orders are expected soon.

Concerns over the vast amount of information collected by electric vehicles have prompted the US to review policies around Chinese imports. Commerce Secretary Gina Raimondo points to China’s ban on Tesla cars in certain areas for national security reasons, raising concerns about the direction of sensitive data. The White House and Commerce Department are yet to comment on the potential restrictions.

Americans personal data and security could be at risk if Chinese firms flood the U.S. markets with considerably cheaper electric vehicles. A surge in inexpensive Chinese cars could disrupt the President’s efforts to stimulate domestic electric vehicle production. Clean-energy goods, including EVs and EV batteries, are the subject of long-awaited reviews.

The Biden administration seeks to review policies around Chinese imports of smart cars and related components to prevent potential evasion of tariffs. There are concerns over whether Chinese firms would consider investment in Mexico to gain access to the American market. Meanwhile, Trump has pledged to raise tariffs on China if re-elected president in November.



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