Here's the root issue and concern cited in the White House statement on the national security probe: "Most cars these days are 'connected'—they are like smart phones on wheels. These cars are connected to our phones, to navigation systems, to critical infrastructure, and to the companies that made them. Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People's Republic of China. These vehicles could be remotely accessed or disabled."

U.S. Commerce Secretary Gina Raimondo specifically cited remote accessibility by "somebody in Beijing" as a major concern in the new investigation, in a statement quoted by the Washington Post. The U.S. government has taken similar defensive actions in the past against social media companies like TikTok and communications companies like Huawei.

So far, no Chinese automakers have established sales of any homegrown vehicles in the U.S., save for maybe Geely-owned Polestar. Some established U.S.-market automakers do now import vehicles manufactured in China. We recently profiled the growing Chinese automaker and manufacturing presence in Mexico, which has stoked fears of Chinese-branded cars potentially crossing the border into the American market under the USMCA trade deal between the U.S., Mexico, and Canada, without establishing manufacturing in the U.S. proper. However, established Chinese automakers in Mexico, like BYD, have recently and repeatedly denied any current plans to launch their vehicles for sale in the U.S. market anytime soon.

The Chinese government has previously taken similar steps against American-branded vehicles—particularly Teslas—in the name of its national security. There have been reports of Teslas being restricted from military bases and other potentially intelligence-sensitive sites as well as airports, industrial zones, sporting events, and specific highway corridors.Reuters reportsthe entire town of Beidaihe, where Chinese communist party leaders are known to vacation, is also off limits to Teslas. Chinese concerns largely mirror those of the American government, stating that cameras and communication technology in the vehicles could report sensitive data on China back to the U.S.

The White House statement similarly positions the probe as a national security concern, stated to protect U.S. manufacturing, jobs, and "middle class families." The government will take no immediate actions against Chinese brands or manufacturing, nor any trade arrangements, but reserves the right to restrict sales if the situation develops, or the probe determines some sort of serious risk, theWashington Postreported from a call with administration officials this week.