U.S. Commerce Secretary Gina Raimondo said on Wednesday that the U.S. could take “extreme action” regarding Chinese connected vehicles, including implementing an import ban amid security concerns.
In an interview with Reuters, the secretary said that the U.S. will have to digest all the data and then figure out what action to take, adding it could ban Chinese connected vehicles or “look for mitigation.”
In late February, U.S. President Joe Biden ordered the department to launch an investigation into security risks posed by Chinese vehicle imports, including connected vehicles, which are smart cars linked to the internet and other wireless networks.
Washington’s inquiry and envisioned regulations on Chinese connected vehicles are expected to also affect the South Korean auto industry.
On April 30, Seoul submitted its comments to the U.S. department regarding the matter, in which it outlined the concerns of the Korean automotive industry.
The concerns included the broad scope of the investigation into connected vehicle supply chains, uncertainties surrounding the scope of potential regulatory targets and the timing of the implementation, all of which may lead to significant burdens on the industry.