Washington, June 3 (IANS) A senior US lawmaker has raised concerns over a Commerce Department decision allowing a foreign automaker with significant ties to China to continue selling and producing connected vehicles in the United States.
This could expose sensitive data, undermine national security safeguards and create loopholes in restrictions aimed at keeping Chinese technology out of the American auto market, Representative Debbie Dingell, a Michigan Democrat, warned.
In a letter to Commerce Secretary Howard Lutnick, he questioned a recent authorisation granted by the Office of Information and Communications Technology and Services (OICTS) despite the administration's connected vehicle security restrictions.
"The Department of Commerce finalized these rules because connected vehicle technologies present clear national security risks," Dingell wrote.
She said modern connected vehicles are capable of collecting and transmitting large amounts of sensitive information, including geolocation data, driving patterns, infrastructure mapping, operational diagnostics and personal consumer information.
"These systems can enable remote access to vehicle functions. As the Department itself recognized, these technologies are vulnerable to exploitation by our adversaries and could be leveraged for surveillance, intelligence gathering, or disruption of critical infrastructure," she said.
Dingell argued that the authorisation appears to create a pathway for companies with substantial ownership, operational or governance ties to the People's Republic of China (PRC) to continue accessing the US market despite the intent of the connected vehicle rule.
"This authorization appears to create a pathway for entities with substantial ownership, operational, or governance ties to the PRC to continue accessing our market despite the intent of the underlying connected vehicle rule," she wrote.
The congresswoman said Congress and successive administrations have recognised that Chinese companies operate under laws that can compel cooperation with Beijing and its intelligence services.
"These concerns cannot be mitigated simply through corporate restructuring, branding distinctions, or supply chain adjustments," she added.
Dingell also warned that existing waiver and authorisation processes could weaken the effectiveness of the rule if exemptions are granted to companies linked to China.
"The decision also raises broader concerns about whether existing authorization and waiver processes may inadvertently create loopholes that undermine the effectiveness of the rule," she wrote.
"If entities tied to the PRC are permitted to continue operating in our market through exemptions or special authorizations, it risks weakening the very protections the rule was designed to establish."
Beyond security concerns, Dingell said China's automotive industry benefits from "extensive state support, industrial overcapacity, unfair trade and labor practices, and distorted market conditions" that threaten the long-term competitiveness of the US auto sector.
"We cannot afford to repeat the mistakes that allowed critical manufacturing sectors to be hollowed out through unfair competition and foreign subsidization," she wrote.
The lawmaker requested a briefing from the Commerce Department on the basis for the authorisation and its implications for implementation and enforcement of the connected vehicle rule. She asked what criteria were used to determine that the approval would not pose a national security risk, what safeguards were imposed on the company, and what coordination occurred with intelligence and national security agencies before the decision was made.
Dingell also sought clarification on whether similar authorisations could be granted to other entities linked to foreign adversaries and how the department plans to prevent companies from circumventing restrictions through corporate affiliations, joint ventures, licensing arrangements or indirect ownership structures.
The issue is being closely watched by the global automotive industry as vehicles become increasingly connected through software, sensors and data networks. Concerns about data security, supply chains and foreign influence have become central to policy debates in major markets, including the United States and Europe.
--IANS
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