Lin Min

linmin67@hotmail.com

AFTER years of suppressing Shenzhen-based telecom giant Huawei on a baseless accusation, the United States is now shifting its focus onto China’s electric vehicles (EVs), a move that could significantly impact another Shenzhen-based enterprise, BYD.

The Biden administration announced Thursday its plans to investigate Chinese-made “smart cars” that have the capability to gather sensitive information about Americans using them. This investigation could result in new restrictions aimed at preventing Chinese EVs and other so-called connected vehicles from being sold in the United States. U.S. officials claim that driver assistance technology in these cars could potentially be used to spy on Americans.

However, the true motive behind this investigation is protectionism.

The U.S. auto industry has been losing ground to Chinese EV makers. Despite the global success of Tesla’s EVs, legacy U.S. automakers have not been able to make an impact in domestic and overseas markets with their own EV models. Chinese rivals have been embraced by car buyers in many parts of the world for their affordability, functionality, and wider range of available models. BYD, for example, produced over 3 million new energy vehicles in 2023, surpassing Tesla’s output for a second straight year. BYD’s cars come in both hybrid and battery-powered versions, while Tesla has focused solely on fully electric cars.

It’s important to note that no Chinese EVs have been sold in the U.S. market, even though Chinese EV makers are establishing production facilities in Mexico and other countries.

Tesla has sold over 1.5 million EVs in China since its megafactory in Shanghai began production in late 2019. Tesla’s cars also come with driver assistance technology, and they may be used to spy on Chinese users, according to U.S. officials’ logic. GM and Ford had been popular in China before the EV boom, and they contain electronic components that one may argue could be used to collect personal information of their users as well.

The United States has been frequently using national security as a justification for creating trade barriers in recent years. U.S. President Joe Biden’s plan to invest US$20 billion to strengthen cybersecurity in maritime infrastructure, partly to replace Chinese equipment, is another example of this approach, following the eye-popping investigation on TikTok.

Shanghai Zhenhua Heavy Industries Co. is the world’s largest crane maker, and its cranes account for nearly 80% of the lifting equipment used at U.S. ports. U.S. officials and lawmakers have raised concerns about the potential vulnerability of these cranes, saying that they can be controlled, serviced, and programmed remotely.

However, extensive inspections by U.S. authorities found no vulnerabilities in over half of the 200 cranes that were manufactured by China, according to U.S. Coast Guard officials who testified at a House hearing last month.

The U.S. has a history of baseless accusations against Chinese companies, as was the case with Huawei and ZTE. I penned an opinion piece titled “A witch hunt” in February 2011, criticizing U.S. lawmakers’ unfounded accusations against the two Shenzhen telecom equipment makers.

In 2011, U.S. lawmakers torpedoed Huawei’s deal to buy the assets of 3Leaf Systems, a U.S. tech company, and ZTE’s bid to supply network equipment to U.S. operator Sprint Nextel Corp., claiming these deals would threaten U.S. national security.

After more than a decade, the U.S. has never come up with concrete proof that Huawei and ZTE’s equipment has been used, or has been trying to spy on a foreign target. This all shows the U.S. is adopting unfair practices to protect its own industries and slow down China’s growth under the guise of national security.

The U.S. smear campaign against Huawei did not stop it from growing. Huawei was the world’s second-largest telecom equipment maker in 2011; six years later, it overtook Sweden’s Ericsson as the largest.

Similarly, the U.S.’ efforts to block Chinese EVs and other products from its market will not address the so-called national security concern. Chinese EV makers, led by BYD, will continue to grow and provide more affordable and better cars to users around the world.

(The author is a deputy editor-in-chief of Shenzhen Daily.)