By The Smartencyclopedia Staff & Agencies

Washington D.C. – The ongoing trade tensions between the United States and China show no signs of easing, with the Biden administration issuing a warning that Chinese electric cars may pose a “significant risk to national security” due to the vast amount of data they collect, potentially sending it to China.

U.S. Commerce Secretary Gina Raimondo disclosed that electric and autonomous vehicles are “collecting an enormous amount of information about the driver, the car’s location, and the surrounding environment,” as reported. She went further to raise a crucial question: “Do we want all this data to go to Beijing?”

This communication follows other measures being prepared within this context. The White House is gearing up for a separate executive order to prevent foreign adversaries from accessing “highly sensitive” personal data.

The U.S. has imposed additional tariffs on Chinese electric cars since 2019. U.S. authorities have long warned that China poses a threat to data security, and the new measure could have implications in various sectors, according to the report.

The U.S./China trade war continues unabated. Chinese columnist Ruan Jiaqi criticized the move, stating that Gina Raimondo’s statements defamed Chinese electric car manufacturers, as reported by the Asia Times. For instance, BYD achieved significant success in Europe and Latin America but avoided the U.S. due to the 25% tariffs imposed by the Trump administration on Chinese cars in 2019.

In December of last year, the U.S. Department of the Treasury released new guidelines for federal grants, excluding vehicles with battery components manufactured or assembled by a “foreign adversary” (also known as China). Starting in 2025, cars with batteries containing certain “critical minerals” extracted or processed in China will also be ineligible for tax credits.

Tesla CEO Elon Musk recently remarked that Chinese electric car manufacturers would “practically crush” competitors if not for trade barriers. The accusations and counterarguments underscore the intensifying battle within the global electric car market and the broader economic implications of the ongoing U.S./China trade dispute.