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James A. Lewis, Director, Strategic Technologies Program at the Center for Strategic and International Studies | csis.org

CSIS expert: ‘bans are likely the only effective way to reduce risk’ of China spying through connected cars

James Lewis, director of the Strategic Technologies Program at the Center for Strategic and International Studies (CSIS), said that Chinese-manufactured technology used in cars provides China with the opportunity to spy on Americans. Lewis made this statement in an October 1 commentary.

"This sort of connection-collection problem will only increase as more connected devices (also known as the Internet of Things) enter into use and offer expanded new opportunities for espionage and disruption," said Lewis. "Things as innocuous as internet-connected fish tanks have been hacked by criminals; cars are simply the next step for well-resourced states. Better privacy rules and cybersecurity requirements address part of the issue, but not the problem of sophisticated foreign adversaries. For the foreseeable future, bans are likely the only effective way to reduce risk."

According to a press release, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a Notice of Proposed Rulemaking (NPRM) that would ban the sale or import of "connected vehicles integrating specific pieces of hardware and software… with a sufficient nexus to the People’s Republic of China (PRC) or Russia." The BIS and its Office of Information and Communications Technology and Services found that certain technologies originating from Russia or the PRC pose an "undue risk to both US critical infrastructure and those who use connected vehicles."

Lewis explained in his commentary that the NPRM arose due to technology security risks concerning China. The NPRM identifies two categories of technologies as posing the highest security risk: vehicle connection systems, such as Wi-Fi, and automated driving systems. He expressed concern that "Chinese entities could remotely take control of a car and cause it to crash or stall." Another issue is that spying could occur through the car via its connectivity system, which allows users to make calls, send texts, or navigate with online maps. He noted that China has "numerous avenues to leverage this data effectively," potentially compiling and weaponizing the information.

Lewis suggested that the NPRM could potentially "trigger a similar response from China" to prohibit foreign technologies used in vehicles. He pointed out that China's laws currently "require companies to cooperate with its intelligence service." In previous instances, China initially banned connected Tesla cars from sensitive areas but withdrew this legislation following significant lobbying efforts and further inspection by the "Chinese auto industry association." However, Chinese bans on connected cars within "sensitive areas" remain enforced.

According to Statista, China ranks among the world’s largest suppliers of car parts, exporting motor vehicle parts and accessories worth $34.8 billion in 2018. The U.S. has purchased approximately $11.7 billion worth of these exports.

Before joining CSIS, Lewis was a diplomat and a member of the Senior Executive Service. He also served as a senior advisor for four UN Groups of Governmental Experts on Information Security, focusing on building stability in cyberspace.