US lawmakers ask Mexican president-elect to address Chinese vehicle concerns

By David Shepardson

WASHINGTON (Reuters) - About 20 Democrats in the U.S. Congress on Tuesday urged Mexican President-elect Claudia Sheinbaum to address national security concerns posed by internet-connected vehicles produced by Chinese automakers in Mexico.

All modern cars and trucks have onboard network hardware providing internet access that allows them to share data with devices both inside and outside the vehicle.

The lawmakers led by Representative Elissa Slotkin and Senator Sherrod Brown asked Sheinbaum in a letter to establish a national review and to send a delegation to the United States by early 2025 for talks.

The U.S. fears that China, a strategic and economic rival as well as trading partner, could use data collected by connected vehicles for surveillance or, in extreme circumstances, remotely control them through the internet and navigation systems.

"We believe that this body of data, under the control of the Chinese Communist Party, is a national security threat," said the letter, also signed by Senators Gary Peters, Debbie Stabenow and Tammy Baldwin.

Last week, U.S. President Joe Biden proposed prohibiting Chinese software and hardware in connected vehicles on American roads, which would effectively bar Chinese cars and trucks from the U.S. market and ban new vehicles produced in Mexico by Chinese automakers.

China rejects the U.S. criticism, and has said the U.S. move "has no factual basis, violates the principles of market economy and fair competition, and is a typical protectionist approach."

The Biden administration is taking steps to prevent Chinese automobiles from being sold the United States, and advocacy groups have warned of what they say is unfair competition from heavily state-subsidized Chinese electric vehicles.

This month, Biden hiked tariffs on Chinese-made EVs by 100% even though only four Chinese light-duty vehicles are currently sold in the United States. Congress approved legislation in 2022 to bar EVs built in China from receiving tax credits.



The lawmakers noted Chinese automakers have made inroads in the Mexican market, saying it raised "significant concerns" that they were now seeking to use Mexico as a base to enter the U.S. market.

The letter noted that Chinese electric vehicle maker BYD (SZ:002594 ) is planning to build a factory in Mexico, which it said "raises the potential for Chinese companies to attempt to circumvent these (U.S. ) tariffs with production in Mexico."

Source: Investing.com