Yesterday (23 September) the US Commerce Department launched a consultation on whether to ban key Chinese auto software and hardware - an embargo that would effectively prohibit imports of the Asian superpower’s electric vehicles (EV).
Reuters reports that the Biden administration has raised concerns about the potential data collected by Chinese EVs and the risks this would pose to national security, a rationale echoing the US government’s attempts to ban social media app Tik Tok.
The move comes three months after the US imposed a 100% tariff on Chinese EVs.
Proposal
The report notes that, if accepted in January, a software ban would come intro effect in 2027, with a hardware ban following in 2030 at the latest.
In a briefing on the matter, US national security adviser Jake Sullivan said that the US already has evidence of Chinese malware in critical US infrastructure and that EVs pose an especially concerning threat.
“With potentially millions of vehicles on the road, each with 10- to 15-year lifespans, the risk of disruption and sabotage increases dramatically.”
In response, Chinese representatives accused the US of not following market principles, a criticism that has been levelled at China by many nations amid growing geopolitical tensions and a rising number of WTO disputes.
Europe
Chinese EVs have been a source of contention elsewhere, with the EU setting out a series of provisional tariffs in August.
The draft outlined the differing rates for Chinese firms, with the maximum tariff set for EV-maker SAIC at 36.3%. The bloc will vote on whether to implement the tariffs at the end of October.
In response China has launched a wave of counter-probes into subsidies and non-market practices across EU industries including dairy and pork, of which it is a significant importer.
The response from nations within the bloc has varied. Most recently Italy came out in favour of tariffs, while Spanish prime minister, Pedro Sanchez, stated his opposition after a trip to Beijing earlier this month. Spain is a significant supplier of pork to China, with last year’s exports of the meat reaching US$1.5bn.
