Chinese technology deployment is particularly noticeable in the automotive sector, with a growing number of brands and models coming to the European and North American markets, especially battery-powered models.
A study by MSI, a consultancy for the Association of National Automobile Dealers (GANVAM), has concluded that by 2030, it will occupy 52.6% of the global market.
Economic problems, import rates, tariffs or possible „illegal” subsidies make these cars cheaper than national cars. These types of vehicles may be under your protection.
The White House hopes that connected vehicles will collect vast amounts of data about drivers and passengers, record information about US infrastructure through cameras and sensors, and be controlled remotely.
As a result, US President Joe Biden, who has announced an investigation into the national security risks posed by Chinese technology in automobiles, has warned that it could be used to collect classified information.
Biden ordered the Commerce Department to launch an investigation in response to the threats, focusing on vehicles with technology from „countries of concern” such as China.
„China is determined to dominate the future of the automobile market by using unfair practices,” Biden said in a statement, adding that „China's policies could flood our market with its vehicles, which could pose risks to our national security.” , he added.
As Washington tries to increase its domestic manufacturing capacity, the US auto industry is trying to reduce its dependence on China.
The research covers personal devices, other cars, U.S. infrastructure, and vehicles that constantly connect with their manufacturers, including electric and autonomous cars. If a foreign government gains access to its systems or data, „new vulnerabilities” could emerge, he said.
„This is a new recognition by the Biden administration that important and emerging technologies will shape both economic growth and national security,” Thibaut Denamiel of the Center for Strategic and International Studies told AFP.
He added that the new measure considers „risks associated with technology transfer to the United States.”
Previous measures to limit foreign investment or impose restrictions on semiconductor exports have addressed threats posed by U.S. transfers abroad.
Beijing „imposes restrictions on American and other foreign automobiles operating in China, why should vehicles imported from China continue to circulate in our country without protection?” Biden said.
While there aren't many such vehicles with Chinese-made technology on American roads right now, Commerce Secretary Gina Raimondo stressed that „we need to understand the purpose of the technology in these cars.”
A senior US official told reporters on condition of anonymity that China's automobile export market is growing rapidly, including in Europe, so it is important to act before the country is invaded by such vehicles.
For his part, Tesla CEO Elon Musk said that Chinese companies in the sector are „very competitive” globally and that their success outside of China is predictable. „If the trade barriers are not put in place, they will almost destroy the rest of the car companies in the world,” he said.
According to community leader Ursula van der Leyen, the European Commission has launched an investigation to determine whether there are „unfair practices” in a market „flooded by electric vehicles sold at artificially low prices thanks to huge state subsidies”.
Chinese manufacturers are aware of what these investigations could mean and are taking action. That's the case for Chery Holding, which has been exporting vehicles since 2001, and one of the ways to avoid the tariff is through factories or assembly lines that assemble parts of the vehicles they receive. They already have 10 plants of this type in countries like Malaysia, Brazil or Iraq and have already decided to build one in Europe.
Growth of Chinese brands worldwide
The Alliance for American Manufacturing welcomed the investigation and called for more measures to protect the industry, including raising tariffs on electric vehicles and limiting tax credits.
According to data from consulting firm MSI, the weight of Asian car brands will grow significantly in both the US and Europe, although to a lesser extent than in Spain. 20.7% in 2025 and 23.5% in 2030. European brands will also lose strength in the 5 main economies of the EU (Germany, France, Italy, United Kingdom and Spain), occupying 70% of the market in 2025 and 67.6% in 2030.
„For Europe and especially for Spain, there is a very favorable situation for the Asian vehicle, especially for the Chinese vehicle: the current law promotes the electric car and China is the largest producer of electric vehicles and the largest producer of batteries. In the world. In the world. That means that European technical barriers to Chinese cars will not only be removed at once, Having been producing electric cars for a long time, they have a competitive advantage and they do it well,” said Diego Gutierrez-Colomar. One of the leading experts in the automotive industry in the Asian market during the celebration of the latest edition of eXpo GANVAM.
Although the figures are striking in Spain and Europe, they are even higher globally. By 2025, Asian brands will occupy 51.7% of the global car market, which will reach 52.6% in 2030, the study predicts.
„Among the reasons for the success of this type of car are its low prices, the quality of production, which is increasingly good, as well as the wide range of models. In fact, between now and 2025, Chinese brands alone will have more than 40 models on the Spanish market,” said Raúl Palacios, president of GANVAM. says