U.S. says to investigate national security data risks from Chinese vehicles

The White House said on Thursday the United States is opening an investigation into whether Chinese vehicle imports pose national security risks and could impose restrictions due to concerns about "connected" car technology.

The U.S. Commerce Department probe is because Chinese assembled smart vehicles could collect sensitive data about U.S. citizens and infrastructure and send the data to China, the White House said.

"China's policies could flood our market with its vehicles, posing risks to our national security," President Joe Biden said in a statement. "I'm not going to let that happen on my watch."

White House officials told reporters it was too early to say what action might be taken and said no decision about any potential ban or restrictions on connected Chinese vehicles had been decided.

Officials said on a call with reporters the U.S. government has wide authority under the law and an administration action could "potentially have a large impact."

Biden called the effort an "unprecedented action to ensure that cars on U.S. roads from countries of concern like China do not undermine our national security" and directed the Commerce Department "to take action to respond to the risks."

There are relatively few Chinese-made light duty vehicles being imported into the United States. Commerce Secretary Gina Raimondo said the administration was taking action "before Chinese manufactured vehicles become widespread in the United States and potentially threaten our privacy and national security."

Chinese EV makers have been counting on Southeast Asia, the Middle East and Europe as their largest exporting markets. BYD, the world's largest EV maker by sales, has repeatedly said it has no plan to sell its cars in the U.S.