The report raises the alarm about data collection on electric vehicles in China

Ministers should consider banning Chinese electric vehicle (EV) makers from government contracts over national security and data privacy concerns, a new report has warned.

Suppliers suspected of having links to China’s military-industrial complex pose a key risk because of the potential for embedded wireless components to be “weaponised”, which could even be used to block British streets, according to the China Strategic Risks report. (CSRI) and the Coalition for Secure Technology.

So-called cellular IoT modules (CIMs) are wireless components that are built into all electric vehicles and act as a gateway for data to flow in both directions.

The report said it was concerned that data generated by electric vehicles made in China and operated in the UK could end up in the hands of the Chinese state and be used for surveillance purposes.

If relations between the UK and Beijing deteriorate, CIMs could also allow China to “disable vehicles” and cause significant disruption to the UK government, police, military and commercial supply chain, it said. supports the report.

In the case of the military, the geolocation and performance data reported by electric vehicles, which is far greater than can be obtained via mobile phones, could even allow the PRC to plot the movement of government and defense vehicles, the report suggests.

The report did not call for a procurement ban on any Chinese electric vehicle firms or Chinese CIM manufacturers.

The study comes amid a rapid influx of Chinese carmakers into the UK market, including Shenzhen giant BYD, XPENG and NIO. According to the Society of Automobile Manufacturers and Traders (SMMT), the market share of newly registered electric vehicles manufactured in China increased from 2% to 33.4% between 2019 and the first half of 2023.

The UK government is rapidly procuring electric vehicles for the public sector and confirmed last year that some models used by the Ministry of Defense (MOD) were supplied by MG, the flagship automotive brand owned by China’s SAIC Motor.

BYD has also made significant progress in the public sector, with at least 1,800 electric buses delivered to local authorities across the country.

Concerns grew last year after a hidden Chinese tracking device was found in a UK government car after being stripped by intelligence officials.

While SAIC is a Chinese state-owned electric vehicle firm, BYD, XPENG and NIO are all private Chinese companies. The report provided no evidence directly linking any of these private firms to the Chinese state or its military.

“The government and the public appear to be unaware when it comes to the dependency, disruption and data security risks that CIMs from Chinese electric vehicles present in the UK,” said Sam Goodman, senior policy director at CSRI.

“Unlike the US and the EU, which are actively looking into the safety issues posed by electric vehicles in China, we have heard little from the new government about the risks posed by Chinese electric vehicles so far. “

He added: “We urge that this is addressed, otherwise the UK risks alienating its closest allies, deepening its dependence on China for its electric vehicle supply chain and green transition, and being exposed to bullying and blackmailing Beijing”.

Charlie Parton, senior expert at the Coalition to Secure Technology, said: “The threat from the Chinese Communist Party cannot be underestimated. It is imperative that the government takes a uniform approach to address the opportunities and threats posed by Beijing.”

“We must take action to ban Chinese-made cellular Internet modules from all of our critical national infrastructure and exclude them from all government procurement through rigorous use of the recently passed Procurement Act.”

A government spokesman did not address the issue of national security and the awarding of public contracts. “We are always alert to international developments and we are very clear that any decision on the implementation of tariffs must be the right one for the domestic auto industry,” he said.

BYD, XPENG, NIO and SAIC have been contacted for comment.

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