China"s Electric Vehicles: A National Security Threat to the UK

The China Strategic Risks Institute (CSRI) has raised alarms regarding the increasing market share of Chinese electric vehicles (EVs) in the UK, which has surged from 2% in 2019 to 33.4% in early 2023. This growth poses significant economic threats to the UK’s domestic car manufacturing sector, which supports 198,000 jobs and contributes 2.5% to the national GDP. The report highlights that the UK government’s lack of import restrictions could lead to the country becoming a dumping ground for Chinese EVs, potentially straining relations with European and American allies. Moreover, the CSRI warns of national security risks associated with the technology embedded in these vehicles. Specifically, the Cellular Internet of Things Modules (CIMs) used in Chinese EVs could allow the Chinese government to access sensitive data about British users. This concern echoes previous actions taken by the UK to phase out Huawei components from its 5G networks due to similar data security issues. The think tank suggests that the UK should implement measures to mitigate these risks, including mandating that foreign EV suppliers do not transmit data overseas and requiring them to share their source code with the British government. Regular inspections of data storage facilities are also recommended to prevent covert data transmission. To protect local manufacturers, the CSRI advocates for an investigation into state subsidies in the Chinese EV market and suggests that the UK government consider providing subsidies to domestic manufacturers or consumers. Failure to address these issues could deepen the UK’s reliance on China and expose it to potential coercion.