Brown Calls on New Mexican President Sheinbaum to Take Action to Address Threat Posed by China’s Connected Vehicles

WASHINGTON, D.C. - U.S. Senator Sherrod Brown (D-OH) is pushing the new Mexican President Claudia Sheinbaum to address the security threat posed by Chinese connected vehicles. Internet-connected vehicles use information and communications technology services to collect a range of sensitive information, including sensor data and images, biometric data like fingerprints and voice recordings, vehicle location, financial information, and vehicle information.

Brown led a bicameral letter asking Sheinbaum - who was sworn in as Mexico's President this week - to take steps to scrutinize the manufacturing and sale of Chinese "connected vehicles."

The letter comes a week after the U.S. Department of Commerce proposed restrictions on the import and saleof connected vehicles tied to the CCP.

"We ask that you quickly turn your attention to a new and growing issue: the national security risks to both our nations from the widespread presence of 'connected' vehicles built by companies with deep ties to the Chinese Communist Party," the members wrote.

Vehicles are becoming increasingly equipped with new technologies that enable safer and more fuel-efficient travel for drivers and passengers. However, information and communications technology and services that are integral to such connected vehicles (CVs) contain vulnerabilities that may pose risks to U.S. national security if exploited. Connected vehicles controlled by foreign adversaries like China can offer a direct entry point to sensitive technology and data and can potentially bypass security measures. Chinese-made cars and the underlying technology enable China to access sensitive personal data of Americans and of critical U.S. infrastructure, presenting unacceptable national security risks.

China has offered significant subsidies to auto manufacturers enabling them to export their vehicles and capture significant shares of foreign markets. One example is Mexico, where Chinese automakers have more-than-tripled their market share since the beginning of the decade.

"For our own national and economic security, the United States has taken action to confront this challenge, imposing targeted new tariffs on Chinese goods, including vehicles, because of these unfair trade practices," the members continued. "The fact that Chinese companies, including automaker BYD, have announced plans for assembly plants in Mexico raises the potential for Chinese companies to attempt to circumvent these tariffs with production in Mexico."

Brown asked President Sheinbaum to take the following steps:

• Formalize the current government's policy, outlined in media reports, of scrutinizing federal economic development incentives - such as tax incentives and reduced utility and land costs - to firms with ties to the Chinese Communist Party, and to urge Mexican states to follow suit. This should include business partnerships with firms affiliated with the Chinese Communist Party, such as joint ventures with Mexican entities.

• Establish a national security review process to address risks posed by the manufacture or sale of vehicles built by Chinese firms to Mexico's people, Mexico's national security, and the regional security of North American and Organization of American States nations. Such a process would follow-up the December 2023 Memorandum of Intent signed by the finance ministers of both our nations, which affirmed the importance of foreign investment screening in protecting national security.

• Send a delegation from her new administration to meet with officials from the U.S. Department of Commerce, the U.S. Department of Treasury, the Office of the United States Trade Representative, the National Economic Council, and the National Security Council by early 2025 to discuss how our nations can work together to address these risks.

Brown was joined by U.S. Senators Debbie Stabenow (D-MI), Gary Peters (D-MI), and Tammy Baldwin (D-WI).

U.S. Representatives Elissa Slotkin (D-MI-07), Yadira Caraveo (D-CO-08), André Carson (D-IN-07), Angie Craig (D-MN-02), Don Davis (D-NC-01), Chris Deluzio (D-PA-17), Debbie Dingell (D-MI-06), Val Hoyle (D-OR-04), Dan Kildee (D-MI-08), Greg Landsman (D-OH-01), Hillary Scholten (D-MI-03), Mikie Sherrill (D-NJ-11), Greg Stanton (D-AZ-04), Haley Stevens (D-MI-11), Tom Suozzi (D-NY-03), Emilia Sykes (D-OH-13), and Susan Wild (D-PA-07) also joined the letter.

Brown is leading efforts to stop China from infiltrating the American auto industry. In July, he introduced his Countering Adversary Reconnaissance (CAR) Act of 2024, new legislation to protect U.S. national security facilities, critical infrastructure, and American citizens by prohibiting connected vehicles produced in China and other adversaries near U.S. military bases and other federal installations. In April, he called on the President to ban Chinese-made electric vehicles in the U.S. to combat the economic and national security threats posed by Chinese automakers. In May, he urged the Biden Administration to ban all Chinese internet-connected vehicles and smart vehicle technology that is designed, developed, manufactured, or supplied from China. He also slammed the Biden Administration's decision to allow the electric vehicle tax credit to go toward cars made using a key battery component from China.

Full text of the letter can be found HERE.

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