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, Cellular Internet of Things Modules (CIMs) in Chinese EVs could be exploited by the Chinese government to gather data on British users or even remotely control the vehicles. This concern echoes previous actions taken by the UK to phase out Huawei technology from its 5G networks due to similar data security issues. To mitigate these risks, the think tank suggests that the UK government should impose stricter regulations on foreign EV suppliers, including mandates to prevent data transmission overseas and requirements for source code transparency. Additionally, regular inspections of data storage facilities should be conducted to ensure compliance. The CSRI also advocates for an investigation into state subsidies in the Chinese EV market and recommends that the UK consider providing support to local manufacturers. Failure to address these issues could deepen the UK’s reliance on China and expose it to potential coercion from Beijing.