- The China Strategic Risks Institute (SCRwarns about the significant economic and security risks posed by the rapid growth of Chinese-made electric vehicles in the U.K., which have grown from two percent of the market in 2019 to 33.4 percent in 2023.
- The report highlights the UK's car manufacturing sector as essential, supporting 198,000 jobs and contributing 2.5 percent to GDP, and raises concerns about China's low-cost EV production, which could jeopardize this sector.
- The CSRI warns of potential national security risks, including the use of Cellular Internet of Things Modules in Chinese EVs that could be exploited to collect sensitive data on British users and potentially disable or control vehicles remotely.
- The think tank suggests several measures, such as requiring foreign EV suppliers to not transmit user data overseas, mandating the sharing of source code with the British government and investigating China's state subsidies for EV production to protect the domestic car industry.
A report from the think tank the China Strategic Risks Institute (CSRI) has raised alarm bells about the rapid growth of Chinese-made electric vehicles (EVs) in the United Kingdom.
The think tank warns that these vehicles could pose significant economic and security risks to the nation. With Chinese EVs already dominating the U.K. auto market, there are concerns that the country could become a "dumping ground" for these vehicles, potentially jeopardizing national security.
The U.K.'s car manufacturing sector is vital to the economy, supporting nearly 200,000 jobs and contributing 2.5 percent to the country's gross domestic product. However, the CSRI report highlights the threat posed by China's massive low-cost EV production, which is currently bolstered by government subsidies allowing the country to produce five to 10 million vehicles annually.
In just a few years, Chinese EVs have grown their market share in the U.K. from two percent in 2019 to 33.4 percent in the first half of 2023. The report warns that without protective measures, the U.K. risks becoming a dumping ground for these vehicles, which could also serve as a backdoor for Chinese EV companies into the restricted European market. (Related: NO EV FOR ME: Nearly half of American and British EV owners plan to shift back to gasoline-powered vehicles for their next purchase.)
Chinese EVs could also be weaponized
But the potential risks go beyond the economic implications. The CSRI report raises serious concerns about national security, highlighting the possibility of "weaponized" Chinese EVs.
One of the most alarming aspects is the use of "Cellular Internet of Things Modules" in these vehicles. These modules are designed to connect cars to the internet, allowing for remote updates and maintenance. However, they could also be exploited to collect and transmit sensitive data on British users to Beijing.
Chinese law requires companies to provide the government with access to their data, a factor that previously influenced the U.K.'s decision to phase out Huawei components from its 5G infrastructure by 2027. The report warns that these modules could also be used to remotely disable or control vehicles in the U.K., potentially creating a direct threat to national security.
The think tank has proposed several measures to mitigate these risks. These include: Requiring foreign EV suppliers to commit to not transmitting user data overseas; mandating that companies share their source code with the British government and allowing regular inspections of global data storage facilities; investigating China's state subsidies for EV production to safeguard the domestic car industry; and introducing subsidies for local manufacturers or providing financial incentives for consumers to support British-made vehicles.
Watch this video showcasing a real flying car made in China.
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