September 24, 2024
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 was expected to announce the proposed ban overnight, citing concerns about the potential for Chinese companies to access and track the data of American drivers, and to potentially manipulate their vehicles through the cars' communications systems and automated driving software.
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 Chinesemade connected-car technology, including that data could be shared with Beijing and be 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 US car manufacturers from cheap Chinese alternatives, this proposed ban is grounded in national security concerns about interference by foreign state actors.
The ban is expected to extend to Russian-made car technology.
Opposition home affairs spokesman James Paterson said the Albanese government needed to outline the steps it was taking to address the risks.
"It's hard to see how it is in our national interest for companies in an authoritarian state to become the dominant supplier of vehicles and retain access to the data they collect," Paterson said. "It's time for Cybersecurity Minister Tony Burke to outline what action the government will take or why he thinks it's not a problem even though our closest allies do."
Reuters reports that the new US regulations will prohibit the importation and sale of vehicles from China with certain Bluetooth, satellite and wireless features as well as highly autonomous vehicles that could operate without a driver behind the wheel. The ban on the software is expected to take effect in the 2027 model year and the hardware ban would take effect in January 2029 or the 2030 model year.
Beijing has previously rejected US concerns about the security risks of Chinese-made connectedcar technology as a "false narrative" and said it did not ask companies to collect private data in other countries in violation of local laws.
The Australian government has not followed the US and the EU in imposing tariffs on Chinese-made EVs as it has looked to encourage their uptake in line with its 2030 climate target of cutting emissions by 43 per cent from 2005 levels.
China is the third-biggest supplier of new cars to the Australian market. About 80 per cent of EVs sold in Australia, including Tesla models, are made in China.
New vehicles are manufactured as "smart" cars with internetenabled hardware that connects to, and shares data with, devices inside and outside the vehicle.
