A recent report from the China Strategic Risks Institute (CSRI) has raised alarms over the growing presence of Chinese-made electric vehicles (EVs) in Britain, warning that the influx of these vehicles could expose the country to significant economic and national security threats. According to the report, the UK’s reliance on Chinese EVs could allow Beijing to “weaponise” key components within the vehicles, posing direct risks to British users and the nation as a whole.
At a glance:
- Chinese-manufactured EVs could potentially be used to gather data on British users and even be remotely controlled by Beijing, posing national security threats.
- The UK’s EV market has seen a significant increase in Chinese imports, with Chinese EVs holding 33.4% of the market share in the first half of 2023.
- The CSRI suggests that Britain could become a “dumping ground” for Chinese EVs, negatively impacting domestic car manufacturing and relationships with key allies.
The UK’s domestic car manufacturing sector, which employs 198,000 people and accounts for 2.5% of the country’s GDP, is facing increased pressure due to the massive influx of cheaply produced Chinese EVs. The report points out that China is subsidizing its EV sector to produce between five and ten million cars per year, which are then sold at lower prices in foreign markets like the UK. This is undermining British manufacturing, which could lead to job losses and a weakened domestic industry.
The rise in market share of Chinese EVs in the UK has been dramatic, growing from just 2% in 2019 to 33.4% by mid-2023. This growth, the CSRI warns, could make Britain a “dumping ground” for Chinese vehicles and a potential backdoor for Chinese EVs into the European market, creating friction with both the EU and the United States, key trade partners of the UK.
However, the threats posed by Chinese-made EVs are not limited to economic disruption. The CSRI highlights serious security concerns, warning that certain components within the vehicles—specifically, Cellular Internet of Things Modules (CIMs)—could be exploited by the Chinese government. These modules could transmit data back to Beijing, providing the Chinese government with sensitive information about British users, including their location and movements. The totalitarian nature of China’s government, which requires all firms to provide access to state authorities, raises concerns that this data could be weaponized for espionage or other malicious activities.
More concerningly, the report suggests that Chinese EVs could be remotely controlled by adversarial forces. This could potentially allow China to shut down or take control of vehicles operating within the UK, posing a severe threat to national security.
The CSRI recommends several measures to address these risks. Among them, it suggests that the UK government mandate that foreign EV suppliers agree not to transmit data overseas, share their source code with the British government, and undergo regular inspections of data storage centers to ensure sensitive information is not being covertly transferred to Chinese servers. Additionally, the report advises the UK to investigate Chinese state subsidies for its EV market and consider offering subsidies to British manufacturers to bolster local industry.
Sam Goodman, Senior Policy Director at the CSRI, expressed concern over the lack of awareness about the risks Chinese EVs pose. “We urge that this be addressed,” Goodman said, warning that failure to act could leave Britain exposed to economic manipulation and security threats from Beijing.
The report underscores the need for the UK government to take swift action to safeguard both its economy and national security as Chinese-made EVs continue to flood the market.
