After smartphones and 5G, the United States is attacking Chinese cars: national security or paranoia? We have our little idea that we shared with you in the editorial of the Watt Else newsletter of January 16, 2025.
You know the expression “whoever wants to drown his dog accuses him of rabies”? Imagine that the American government has transformed it into: “whoever wants to get rid of a competitor accuses him of working for the Chinese army”. The United States is doing everything it can to curb Chinese influence and competition on its territory.
Several tech companies are already on the blacklist, such as Huawei, but the entire Chinese automotive sector is threatened with being banned. This decision goes beyond a simple protectionist measure: the American government has initiated a Cold War 2.0 against China.
Towards a ban on all Chinese auto technologies
Whether the current president is Biden or Trump does not really seem to change the situation: record customs duties and bans are on the lips of both parties. It would above all be a question of national security.
In September 2024, Commerce Secretary Gina Raimondo claimed that China could spy on Americans through their connected cars, or even launch an attack by taking control remotely. What looks more like the scenario of a Fast & Furious fuels a real American paranoia. The United States wants to act before it is too late and there are millions of Chinese-technology vehicles on American roads.
The outgoing Biden administration is finalizing rules that will ban Chinese connected vehicles (cars, trucks and buses) from the US market within two years. A first step in 2027 would first exclude all automotive software developed by Chinese suppliers. Then, in 2029, all components from China (or Chinese companies). The final decision on this text will still fall to the Trump administration.
The good excuse
At the same time, the Chinese giant CATL is now included in “section 1260H”, otherwise known as the American blacklist. While the CATL company largely dominates the battery market (but not the American market), it is suddenly accused of having links with the Chinese army. What society refutes.
If inclusion on this blacklist is not a real sanction, American companies are strongly encouraged to stay away from these partners. It will be interesting to observe whether Tesla or Ford will evolve their commercial partnership accordingly.
-Cowardly behavior
It is easy to ban all Chinese competition under false pretexts. However, all these decisions could weigh heavily on the American automobile industry, and not just the rare Chinese manufacturers established in the USA, such as Geely (Volvo, Polestar and Zeekr).
In Europe, voices are being raised to copy these measures, without realizing the deleterious consequences that this would have on all European manufacturers. Hiding your eyes by withdrawing into yourself has never been an effective defense technique against predators, unless you are an armadillo, and even then…
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