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Monday 16 September 2024 6:00 am  |  Updated:  Monday 16 September 2024 9:10 am

Chinese EV makers should be barred from UK public contracts over data privacy fears, campaigners warn

By: Guy Taylor

Transport Reporter

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Ministers should consider banning Chinese electric vehicle (EV) manufacturers from securing government contracts over national security and data privacy concerns, a new report has warned.

Suppliers suspected of having ties to China’s military-industrial complex pose a key risk due to the potential for built-in wireless components to be “weaponised”, which could even be used to gridlock British streets, according to the report by the China Strategic Risks Institute (CSRI) and the Coalition on Secure Technology.

So-called Cellular IoT Modules (CIMs) are wireless components that are embedded in all electric vehicles, and act as a gateway for data to flow in either direction.

The report said it was concerned that data generated by Chinese-manufactured EVs operated in the UK could end up in the hands of the Chinese state, and could be used for surveillance purposes.

Should relations between the UK and Beijing deteriorate, the CIMs could also enable China to “disable vehicles” and cause significant disruption to the government, the police, the military, and the UK’s trade supply chain, the report claimed.

In the case of the military, geolocation and performance data reported by EVs, which is far greater than can be acquired via mobile phones, could even allow the PRC to plot the movement of government and defence vehicles, the report suggested.

The report did not call for a procurement ban to be targeted towards any specific Chinese EV firms or Chinese CIMs makers.

The study comes amid a rapid influx of Chinese automakers into the UK market, including Shenzhen-based giant BYD, XPENG and NIO. According to the Society of Motor Manufacturers and Traders (SMMT), the market share of newly-registered China-made EVs increased from 2 per cent to 33.4 per cent between 2019 and the first half of 2023.

The UK government is rapidly procuring EVs for the public sector and confirmed last year that some models used by the Ministry of Defence (MoD) had been supplied by MG, the iconic motoring brand owned by China’s SAIC Motor.

BYD has also made significant inroads in the public sector, with at least 1,800 electric buses delivered to local authorities across the country.

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Concerns spiked last year after a hidden Chinese tracking device was found in a UK government car after it was stripped back by intelligence officials.

While SAIC is a Chinese state-owned EV firm, BYD, XPENG and NIO are all private Chinese companies. The report did not offer any evidence directly tying any of these private firms to the Chinese state or its military.

“The government and the public appear to be unaware when it comes to the dependency, disruption, and data security risks the CIMs within Chinese EVs present to the UK,” Sam Goodman, senior policy director at CSRI, said.

“Unlike the USA and EU, that are actively looking into the security issues Chinese EVs present, we have heard little from the new government on the risks Chinese EVs present so far.  “

He added: “We urge that this be addressed, otherwise the UK risks alienating its closest allies, deepening its dependency on China for its EV supply chain and the green transition, and leaving itself exposed to being bullied and blackmailed by Beijing.”

Charlie Parton, lead expert at the coalition for securing technology, said:  “The threat from the Chinese Communist Party cannot be underestimated. It is imperative that the government adopts a uniform approach to dealing with the opportunities and threats posed by Beijing.”

“We need to take measures to ban Chinese made Cellular Internet of Things Modules from all of our critical national infrastructure and exclude them from all government procurement by rigorous use of the recently passed Procurement Act.”

A spokesperson for the government did not address the issue of national security and the award of public contracts. “We are always vigilant to international developments and are very clear that any decision over the implementation of tariffs has to be the right one for our domestic automotive industry,” it said.

BYD, XPENG, NIO and SAIC were all contacted for comment.

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Volkswagen is suffering from high costs, fierce Asian competition and a prolonged bitter conflict with unions over plant closures.

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