Biden Orders Probe Into Foreign Car Parts, Citing China Risks

President Biden has ordered the Commerce Department to open an investigation into foreign-made software in cars, citing Chinese technology as a potential national-security risk.

Chinese efforts to dominate the global auto industry posed clear security risks to the U.S., he said Thursday.

“Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China,” Biden said in a statement. “These vehicles could be remotely accessed or disabled.”

The investigation could lead to restrictions on the use of certain parts in cars in the U.S.

The probe is the latest in a series of moves by the Biden administration to protect U.S. industry against what some see as the growing threat of Chinese cyberattacks.

Last week, the White House revealed plans to invest more than $20 billion in maritime security, raising concerns that China-built cranes with advanced software at many of the nation’s ports posed a potential national-security risk.

There has been a surge of warnings from top U.S. officials, including Federal Bureau of Investigation Director Christopher Wray, regarding the potential threat to American lives posed by the infiltration of the nation’s critical infrastructure by Chinese hackers.

In the statement, Biden said Chinese automakers were seeking to flood the U.S. market. The Commerce Department probe will explore the vulnerabilities and threats that could arise if a foreign government gained access to vehicles’ systems or data, he said.

Modern vehicles are effectively connected computers on wheels, collecting a vast array of information using sensors, apps and cameras. The increased connectivity of cars has long posed a quandary for regulators.

In July, California’s privacy regulator said it would examine the growing amalgamation of data collected by smart vehicles. Regulators in Europe have opened investigations into how the auto industry uses personal information from cars such as location data, and in some cases forced manufacturers to update software to limit data collection.

The Biden administration has been trying to reduce the U.S. auto industry’s reliance on China, including using tax credits to boost electric-vehicle sales and pushing automakers away from Chinese suppliers.

Write to Gareth Vipers at [email protected]