Chinese Electric Cars: Calls to Ban Imports to US
Author: Mariko Oi, Business Reporter
Date: 12 April 2024, 04:51 BST
Last Updated: 1 hour ago
President Joe Biden has been urged to ban imports of Chinese-made electric cars to the US. The chair of the Senate Banking Committee, Senator Sherrod Brown, wrote “Chinese electric vehicles are an existential threat to the American auto industry.” These strong comments from a US lawmaker reflect growing concerns over the influence of Chinese electric vehicles (EV) in the American market. Senator Brown’s statements coincide with the ongoing investigation launched by the White House to assess the potential national security risks posed by Chinese vehicles.
Protection of the American auto industry and national security are key concerns prompting the call to ban Chinese electric cars. Senator Brown specifically stated, “We cannot allow China to bring its government-backed cheating to the American auto industry.” These concerns have also revolved around the possibility of Chinese-made cars collecting sensitive data from American drivers and passengers, effectively threatening national security.
The battle to protect the American auto industry
As the largest producer of cars, China has strengthened its grip on the global automobile market. The rise of Chinese electric vehicles presents a challenging competition against American manufacturers, leading to the call for imposing steep tariffs and import bans. Senator Brown’s strong opposition to Chinese-made electric cars echoes the growing concerns at a crucial juncture in US politics, as the senator from the car-producing state of Ohio seeks reelection in November’s polls.
Tweaking China’s electric vehicle industry
In February, President Biden expressed concerns over China’s policies, emphasizing the potential floods of Chinese vehicles entering the American market and their perceived risks to national security. The Biden administration explores potential restrictions due to concerns that Chinese-made vehicles may inadvertently gather large amounts of sensitive data on their drivers and passengers. Chinese vehicles continuously collect data through the use of advanced technology, including their cameras and sensors, simultaneously interacting with critical US infrastructure, leaving the vehicles susceptible to remote piloting and disabling.
Bilateral exchange of competitive blows
With the US and China locked in a trade war since 2018, the battle to secure market dominance has taken many forms. The dispute began when the Trump administration imposed tariffs on over $360 billion of Chinese goods. Beijing, in response, retaliated with tariffs on over $110 billion of US products. With President Biden retaining most of these tariffs, the competition has continued, with the US witnessing a 20% decrease in the value of goods imported from China, while US exports dipped by 4% to just under $148 billion.
Nevertheless, the bilateral trade war’s impact on electric vehicle imports from China is a significant point of contention. The American airline industry has also called on the Biden administration to halt approvals of new flights between the US and China, citing China’s “damaging anti-competitive policies” that disadvantage US carriers. The request highlights the concerns over the growing influence of Chinese carriers and the repercussions on US workers and businesses. Both economies find themselves locked in a struggle to protect their national interests while attempting to secure their positions in the global market.
