During a late-February, 2024, interview on CNBC’s “Closing Bell: Overtime,” Commerce Secretary Gina Raimondo suggested that greater action should be taken to prevent Chinese electric vehicles from flooding the market. Raimondo cited possible national security threats driving her opinion on the vehicles.
CNBC co-host Morgan Brennan asked the secretary, “Stellantis’ CEO saying low-cost Chinese EVs are, going to be an ‘existential problem’, just a few days ago. We know Europe’s grappling with this problem. In the U.S., we already have a tariff on Chinese EV imports. Do more actions need to be taken?”
Raimondo agreed that Chinese EVs should be viewed as a possible threat to American interests. She further explained how the technological components of the vehicles could collect an extraordinary amount of detailed data that could land in the hands of the Chinese government.
“Probably, yes. I share the concern. By the way, I have national security concerns about electric vehicles. An electric vehicle has sensors and semiconductors. They know who’s driving it, where they’re driving, huge amounts of data. Chinese EVs on our road, is that data going back to Beijing in ways that undermine our national security?” Raimondo responded.
The commerce secretary noted that she fiercely advocates for competitive American industry. However, Raimondo asserted that China is manipulating “market dynamics” to provide an advantage in the international market.
“We’re looking hard at that. Additionally, what you say, listen, I have always maintained Americans can compete if there’s a level playing field. And you have a situation where China is distorting the market dynamics due to subsidies and low costs of capital. And so, I know the president is deeply concerned about both of these issues, and the administration is being thoughtful. We want to get it right, but have our eye, certainly, on the ball of thinking about what can we do, what must we do to protect Americans,” she added.
Raimondo has consistently expressed concerns over Chinese EVs and their national security implications for the U.S. and other international partners such as the European Union. Earlier this year, at an event hosted by the US think tank Atlantic Council, the commerce secretary issued a similar warning about the technology in Chinese-made EVs.
“A sophisticated EV, and then an autonomous vehicle, is filled with thousands of semiconductors and sensors. It collects a huge amount of information about the driver, the location of the vehicle, the surroundings of the vehicle,” Raimondo said. “Do we want all that data going to Beijing?”
Raimondo pointed out that China had banned vehicles produced by American-based EV manufacturer Tesla from traveling in certain parts of its country based on national security concerns. “Well, think about that,” she said. “That’s just one example, EVs… You could ask the same questions about semiconductors, many of which are made in China,” Raimondo said.
The secretary went on to explain that while international economic relationships can be mutually beneficial between the U.S. and China, the obvious national security concerns that exist for both parties must be considered.
“Europe and the United States have huge trading relationships with China. Hundreds of billions of dollars. And that is a good thing,” Raimondo said. “Selling goods to China creates jobs in both of our countries… Having said that, there are real national security concerns for both of us… And we have to be eyes wide open about that,” she continued.
Watch her here:
Note: The featured image is a screenshot from the embedded video.
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