The Joe Biden administration is reportedly considering implementing stringent restrictions besides tariffs on the import of Chinese ‘smart car’ products and related components, in a move geared towards allaying burgeoning concerns surrounding data security.
What Happened: The proposed restrictions would target electric vehicles (EVs) and their components from China, irrespective of where they are assembled, Bloomberg reported, citing people familiar with the matter. The aim is to thwart Chinese manufacturers from infiltrating the American market via other countries such as Mexico. The proposed restrictions may also extend to countries besides China that pose data security threats to the US, the report added.
U.S. officials harbor significant apprehensions regarding the data collected by ‘smart cars’, a concern shared by China with respect to American vehicles in its market. Smart vehicles include EVs and other interconnected and autonomous vehicles.
Measures Under Consideration: According to Bloomberg, the new restrictions could be in the form of certain information and communication technology transaction regulations. However, officials are yet to make a definitive decision as they continue to conduct a comprehensive policy review.
Furthermore, the Biden administration is considering the possibility of raising duties on Chinese EVs from the current 25%.
Chinese EV makers such as BYD have largely steered clear of the American market due to hefty tariffs. Nevertheless, U.S. officials fear that these companies might ultimately choose to shoulder these costs, posing a threat to domestic EV makers owing to the low price of China-made EVs.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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