The Biden administration has initiated an investigation into the potential threats posed by smart car technology from China and other countries deemed concerning. The US Commerce Department is spearheading this probe with a focus on connected vehicles, which are essentially any cars equipped with internet access. This step reflects apprehensions that such technology, inclusive of cameras, sensors, and on-board computers, could be misused to gather sensitive information about American citizens and infrastructure.

Commerce Secretary Gina Raimondo underscored the urgency of the investigation, emphasizing the need to act preemptively before Chinese-manufactured vehicles gain a substantial presence on American roads. The possibility of foreign adversaries like China disabling thousands of vehicles on US soil was highlighted as a severe risk to national security and privacy. President Joe Biden reinforced this sentiment, drawing attention to the unfair business practices, including state subsidies for Chinese-made electric vehicles, which could potentially dominate the auto industry.

While the investigation is still in its early stages, with no immediate restrictions being implemented, officials suggested that it could lead to regulations that might restrict or outright prohibit certain vehicle components from being used in the US. This approach mirrors previous actions taken against companies like Huawei over concerns that they could be leveraged by the Chinese government for espionage.

China, on its part, has criticized the US for what it perceives as the wrongful targeting of its companies under the guise of national security, thereby hindering global competition. The investigation is also set against the backdrop of Tesla facing similar scrutiny in China, with restrictions reportedly limiting where their vehicles can be driven due to espionage fears.

Despite high tariffs that have so far prevented the sale of Chinese-made cars in the US, some Chinese automakers are considering setting up manufacturing plants in Mexico. This move has raised alarms among US auto executives about the potential influx of low-priced models into the country, further intensifying the competitive landscape.

The Biden administration's decision to probe the potential risks of connected and autonomous Chinese vehicles underscores a broader concern about the collection of sensitive data and the ability to remotely pilot or disable vehicles. With relatively few Chinese-made light-duty vehicles currently imported into the US, Commerce Secretary Raimondo emphasized the proactive nature of this investigation to safeguard national security and privacy before these vehicles become widespread.

As the probe unfolds, it will explore various aspects of vehicle technology, including the licensing of software and where automakers source their components. The outcome could significantly impact the future landscape of the US auto industry, particularly in the realm of connected and autonomous vehicles, as the administration grapples with the challenge of ensuring national security without stifling innovation and competition.