Citing national security concerns, the United States has launched a fresh wave of technology restrictions on China, with the electric vehicle (EV) sector being the latest focus. While the Biden administration has currently placed internet-connected cars on the list, indications suggest that China’s booming EV industry is the primary target.

The White House revealed on Thursday that President Biden is taking “unprecedented action” to safeguard Americans from potential national security risks posed by internet-connected vehicles from countries of concern, including China. The US Department of Commerce will conduct an investigation into the national security risks associated with internet-connected vehicles, especially those incorporating technology from countries such as China.

President Biden emphasized the perceived threat, stating, “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.” Currently, only internet-connected cars have been targeted, but experts believe that the focus is on China’s rapidly advancing EV industry.

China, having become the world’s largest vehicle exporter in 2023, is experiencing a surge in EV production. Chinese EV producer BYD Co surpassed Tesla in the fourth quarter of 2023, marking a historic milestone for China’s auto industry. The country exported 4.91 million vehicles in 2023, with 1.2 million being new-energy vehicles.

Experts argue that the US move is a reaction to the significant rise of China’s EVs in the international market, sparking concerns in the West about the potential decline of their automotive industry’s dominance. The Biden administration’s strategy, framed under the guise of “national security,” is seen by critics as an attempt to hinder China’s EV industry development.

Despite the limited presence of Chinese-made vehicles in the US, the Biden administration aims to act preemptively to prevent potential privacy and security threats. Commerce Secretary Gina Raimondo emphasized the need to address these concerns before they become widespread.

While some view the US actions as a form of trade war and economic sanctions against China, others suggest that the Biden administration’s move is a response to the perceived failure of the US EV development strategy. Analysts argue that instead of blaming China, the US should address its shortcomings in fostering a competitive new-energy vehicle industry.

As discussions between the two largest economies continue, some believe that the US should reconsider its approach, avoiding actions that may hinder its own auto industry. China, as a global leader in EV production, urges the US to respect fair competition principles and create an open and non-discriminatory business environment.