Joe Biden is expected to unveil new tariffs on Chinese EVs. Here's what that could mean for the sector.
Business InsiderMay 02
US to Ban Chinese Technology in Cars
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Above: Employees work on an electric vehicle (EV) production line at the Leapmotor factory in Jinhua, China's eastern Zhejiang province on September 18, 2024. Image copyright: Adek Berry/Contributor/AFP via Getty Images
The Facts
The US Department of Commerce announced plans to ban certain Chinese hardware and software from connected vehicles on Monday.
The proposal, which would also include Russian-made car components, was first proposed in February, followed by an investigation into the potential risks surrounding electric vehicle (EV) features like sensors and other internet-connected components.
The Spin
Anti-China narrative
Besides the clear economic threat posed by China's unfair EV industry, this proposal seeks to prevent serious physical threats, too. As these electric vehicle technologies are linked directly to the Chinese government, Beijing would have the power to spy on American drivers and infrastructure, not to mention sabotage these vehicles from abroad. If the White House doesn't step in, China can do whatever it wants to America and its people.
Pro-China narrative
This proposal is fearmongering at its finest. What Washington really wants is to prevent China from becoming a success in the EV market, similar to the 'made-in-China' boom of the early 2000s. Instead of working with Beijing, whose EV and solar technologies have led the world in decarbonization, a handful of US politicians have chosen to risk destroying that climate progress and hurt its own car companies for political points.
