A report from the China Strategic Risks Institute (CSRI) has highlighted the increasing market share of Chinese-made electric vehicles (EVs) in the UK as a significant concern, warning of potential “economic and security risks” for the nation.
According to the report, the UK’s car manufacturing sector supports 198,000 jobs and contributes 2.5 per cent to the country’s gross domestic product (GDP).
However, the rapid growth of China’s EV industry, bolstered by government subsidies enabling the production of five to ten million low-cost vehicles annually, threatens the future of British car manufacturing if import restrictions are not implemented.
The impact of this trend is already visible, with the CSRI revealing that Chinese EVs have grown their market share in the UK from 2 percent in 2019 to 33.4 percent in the first half of 2023.
The think tank cautioned that, unlike the European Union, the UK has refrained from imposing tariffs on Chinese-made EVs.
This decision, it warned, could transform Britain into a “dumping ground and a potential backdoor into the European market” for Chinese vehicles.
Such a situation could strain Britain’s relationships with key allies, including European nations and the United States, potentially jeopardizing trade agreements.
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Beyond economic risks, the CSRI warned of potential national security concerns, suggesting that the Chinese government could “weaponize” components in Chinese-made EVs.
According to the report, Chinese-manufactured Cellular Internet of Things Modules (CIMs) used in EVs could be exploited to collect and transmit data on British users to Beijing.
The report noted that Chinese law requires companies to provide the government with access to their data, a factor that previously influenced the UK’s decision to phase out Huawei components from its 5G infrastructure by 2027.
The think tank also expressed concerns that these modules could allow adversarial forces to remotely disable or control vehicles in the UK, posing a direct threat to national security.
To mitigate these risks, the CSRI recommended that the UK require foreign EV suppliers to commit to not transmitting user data overseas under any circumstances.
It also proposed a legal mandate for companies to share their source code with the British government and allow regular inspections of global data storage facilities to ensure sensitive information is not covertly transferred to unauthorized servers.
The CSRI further urged the British government to investigate China’s state subsidies for EV production to safeguard the domestic car industry.
It suggested that the UK consider introducing subsidies for local manufacturers or providing financial incentives for consumers to support British-made vehicles.
Sam Goodman, Senior Policy Director at the CSRI, told The Telegraph:
“The Government and the public appear to be unaware of the dependency, disruption, and data security risks the CIMs within Chinese EVs present to the UK.
“We have heard little from the new Government on the risks Chinese EVs present so far.”
“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.”
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