Philippine Trade and Industry Secretary Alfredo Pascual (right) and US Commerce Secretary Gina Raimondo attend a press conference in the Philippines on March 11, 2024.
Sta Rosa Jam | AFP | Getty Images
Chinese electric cars could one day be on American roads if there are sufficient government controls on the software and sensors, U.S. Commerce Secretary Gina Raimondo told CNBC's Eunice Yun in an exclusive interview on Tuesday.
“It's possible. I could see a day when these vehicles are on the roads in the United States, but not unless we have very important controls and conditions around the software and sensors in those vehicles,” Raimondo said.
In addition to using a battery instead of gasoline for power, today's electric cars typically come with a range of driver assistance programs and in-car entertainment that can be synced with users' cell phones.
That has raised concerns about data collection, with the White House saying in late February that the Commerce Department would investigate whether “connected vehicles” imported from China pose national security risks.
“Because ultimately we must protect the American people from the threat posed by China,” Raimondo said, claiming that Beijing could access location data or personal messages transmitted via Chinese-made cars.
“It doesn't matter if those cars are made in Mexico or Beijing,” she said.
“The Chinese government has never requested, and will never request, any company or individual to collect or provide data, information or intelligence located abroad in contravention of domestic laws,” the Chinese Foreign Ministry said.
Concerns about Beijing's access to data have also prompted US lawmakers to consider a bill that could effectively prevent TikTok from operating domestically. The popular social media app is owned by China-based ByteDance.
When asked about the bill, Raimondo emphasized her support for such legislation.
“I think we may be able to mitigate the risks [from TikTok] “If we have enough tools, we may not have enough tools. I think a ban is something that also needs to be considered,” she said.
Raimondo also described US efforts to secure supply chains, especially in semiconductors, as “making significant progress.”
Encouraging investments outside China
Raimondo was speaking on the sidelines of her two-day visit to the Philippines, during which she headed a delegation that included 22 senior executives from American companies and non-profit organizations.
Delegates announced more than $1 billion in recently completed or planned investments in the Philippines, according to a statement from the Department of Commerce.
Philippine Trade and Industry Secretary Alfredo E. “It's an opportunity we see and welcome,” Pascual told Yon regarding US efforts to “support the friendship” or secure its supply chain.
“Is this something we are happy about? Yes, of course we are happy about it, but we will not sever relations with any other country by doing this,” Pascual said in an exclusive interview. “China remains our largest trading partner overall. Our largest source of imports is China. So that relationship continues.”
Raimondo claimed that her trips to the Philippines and other countries in Southeast Asia are “not about China” but about making the United States and its companies the “partner of choice” for businesses in the region.
Google, MasterCard and Microsoft were among the companies whose investments in the Philippines were highlighted in the US readings.
Sol-Go, a US-based solar panel company, was also included in the list. Sol-Go CEO and Chairman Scott McHugo said the company is building a new factory in the Philippine Free Trade Zone to sell products worldwide.
He said the company has been present in the Philippines since 2014 and has existing relationships with local manufacturers, which prompted Sol-Go to bypass Vietnam and Turkey to make this investment decision.
As for China, McHugh said that with the current project completed and its total investment exceeding $5 million in about 18 months, he would be “very open” to considering investments elsewhere including China, where he has done business for more than a decade. .