Chinese carmakers 'collect large amounts of data on occupants,' to face scrutiny in the US

The White House has launched an investigation into cars manufactured in China and other unspecified “countries of concern.”

Concerns arise from the fact that most modern cars are constantly connected to drivers’ phones, and sometimes other vehicles, the local infrastructure, and manufacturers to enable certain technologies like driver assist systems, GPS, or even security. However, each of these technologies also becomes a point of entry for people, especially threat actors and government-backed hackers to snoop.

According to a statement from the White House, connected vehicles gather substantial amounts of sensitive data on drivers and passengers, use cameras and sensors to record detailed information on US infrastructure, and have the capability to interact directly with critical infrastructure.

Officials fear the potential of these threat actors to exploit these vulnerabilities. Moreover if foreign governments gain access to this data, it is likely to be used in ways that endanger national security.

The Department of Commerce will lead the investigation, with an aim to understand the scope of the technology in these cars, and to what extent can they capture extensive data or remotely manipulate connected vehicles.

Commerce Secretary Gina Raimondo emphasised the need for public input to determine the appropriate technologies and market participants for regulation. This marks the first investigation conducted by the agency’s Bureau of Industry and Security under Trump-era Executive Orders focused on safeguarding domestic information and communications technology and services supply chains from national security risks.

President Joe Biden expressed determination to prevent China from dominating the auto market with unfair practices, which could pose risks to national security.

He highlighted concerns that connected vehicles from China could gather sensitive data about American citizens and infrastructure, potentially transmitting it back to China and allowing for remote access or disablement.

“China is determined to dominate the future of the auto market, including by using unfair practices. China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch,” President Joe Biden said.

While China-based carmakers are not yet widespread on US roads, they are increasingly common in other markets like Europe. The investigation primarily focuses on the cameras, sensors, and software integrated into these cars, even though many of the vehicles causing concerns are electric vehicles (EVs).

This isn’t the first time the US has investigated Chinese companies over security concerns. In the past, it banned the import and sale of telecom networking equipment made by Huawei and ZTE and required the removal and replacement of their gear in existing infrastructure, citing security risks.