Economic Watch: Companies, experts decry U.S. crackdown on Chinese auto tech as “national security abuse”

BEIJING, Sept. 25 (Xinhua) — Chinese companies and experts have criticized the growing protectionism and abuse of “national security” that underscore the U.S. government’s latest plan to rid the country’s vehicles of Chinese technology and components.
The U.S. Commerce Department this week proposed banning the use of Chinese and Russian-developed software and hardware on autonomous and internet-connected vehicles, citing “national security” concerns.
Many Chinese automobile firms say such concerns are groundless and camouflage the Biden administration’s resorting to political means to knock out Chinese firms that outcompete their U.S. peers.
“It is another example of the United States abusing the concept of national security to hamstring China’s technological advances,” said Hua Xianping, chairman of Wuxi Checheng Zhilian Technology Co., Ltd., which focuses on intelligent vehicle networking.
“This not only goes against the principles of the market economy and fair competition, but also undermines the stability of global industrial chains,” he said.
Industry observers said that in self-driving technologies, while U.S. companies take the lead in AI algorithms and chips, their Chinese counterparts score higher in sensors and laser radar. China’s mature industrial chains also help lower the production costs and increase the market appeal of related products.
A spokesperson for a Hubei-based new energy vehicle company said the United States has a record of restricting vehicle imports from Japan and the Republic of Korea at times when U.S. carmakers struggled in the domestic market.
“The United States really needs to focus more on improving the competitiveness of its auto industry, rather than creating barriers for foreign competitors, because ultimately this will harm the global auto industry,” she said.
Lyu Xiang, a research fellow at the Chinese Academy of Social Sciences, said that following the 100-percent duty on Chinese electric vehicles, the proposed ban reveals the U.S. government’s propensity to use tariff and non-tariff barriers to shield its domestic capacity.
The restrictive measures come at a time when U.S. companies struggle to find direction in the realm of autonomous driving and electric vehicles, Lyu said, referring to Apple’s decision to scrap its plan to release an autonomous electric vehicle and suspicions around Tesla’s Full Self-Driving feature.
“The latest move is undoubtedly intended to win time for U.S. companies to catch up in technology,” he said. “But it will backfire and trigger opposition from even the companies it tries to protect.”
The modern automotive industry is built on global cooperation, and a car’s software and hardware come from across the globe, Hua explained, adding that a unilateral ban will lead to technological and market fragmentation, while ratcheting up costs and disrupting supplies for U.S. companies.
Another Hubei-based producer of vehicle parts said the proposed ban would deal a blow to both the company and its many U.S. clients, including big-name brands like Ford and Buick.
“Our U.S. partners have told us they are in great pain. They have been protesting with the U.S. government, which has turned a deaf ear and insisted on going its own way,” said the company’s board chairman, who asked not to be named. “No one benefits from this ban.” ■