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The Albanese government says it is closely watching a move by the US to ban the use of Chinese software and hardware in smart vehicles due to national security concerns.
The US Commerce Department is expected to announce the proposed ban on Monday (US time), citing concerns about the potential for Chinese companies to access and track the data of American drivers, and potentially manipulate their vehicles through the cars’ communications systems and automated driving software.
The Biden administration is expected to announce a ban on the use of Chinese software and hardware in new vehicles due to national security concerns. Credit: Bloomberg
The Department of Home Affairs said it had been closely monitoring the US developments on the matter, saying in a statement it “has been proactively engaging with the US government to understand the implications of any proposed regulation”. However, the department did not elaborate on whether the Australian government would consider taking similar steps.
The US decision follows a months-long investigation by the department, ordered by President Joe Biden, and warnings from Commerce Secretary Gina Raimondo about the risks of Chinese-made connected-car technology, including that data could be shared with Beijing and used to disable cars remotely.
“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” Raimondo said in May.
It also represents a major escalation of the US’s crackdown on China’s booming auto industry, after the Biden administration slapped 100 per cent tariffs on Chinese-imported EVs in May. But whereas that decision was a trade protectionist policy designed to shield American car manufacturers from an influx of cheap Chinese alternatives, this proposed ban is grounded in national security concerns about nefarious interference by foreign state actors.
The ban is expected to extend to Russian-made car technology where the same concerns apply.
Opposition home affairs spokesman James Paterson said the Albanese government needed to outline the steps they were taking to address the risks.
“It’s hard to see how it is in our national interest for companies headquartered in an authoritarian state to become the dominant supplier of vehicles in Australia and retain access to the enormous amounts of data they collect,” Paterson said.