(KH explains) US attacks on Chinese connected vehicles worry South Korea

The South Korean government and the auto industry are on high alert as the United States prepares to enforce regulations on connected vehicles made in China this fall, citing national security concerns over potential data leaks involving American consumers.

While the focus appears to be on complete vehicles, the regulations could indirectly impact China-made components if they are deemed to be integral to data collection and transmission processes that raise safety concerns. The broad scope of the term “connected vehicles” – which includes any car equipped with navigation or wireless software that communicates with systems outside the car – could include many components from China used in Korean vehicles, such as telematics control units and wireless communication modules , in accordance with new US regulations.

While experts see the U.S. regulatory move as part of broader geopolitical and technological competition between the U.S. and China, they also stressed that connected vehicles do pose a risk of data leakage and that the Chinese government already uses such data for domestic surveillance purposes.

Security vulnerabilities

U.S. Secretary of Commerce Gina Raimondo emphasized the seriousness of these issues during a hearing before the Senate Appropriations Committee last week. She described China’s connected vehicles as smart cars with numerous sensors and chips, controlled by software that can transmit vast amounts of data back to China, such as GPS locations, driving habits and even in-car conversations.

In an interview with Reuters earlier this month, Raimondo even said the United States was analyzing data to determine the scope of required measures, which could range from an outright ban on connected vehicles made in China to more detailed restrictions.

“The United States has been concerned about intellectual property theft and confidentiality breaches related to Chinese cyber activities for more than a decade. They have taken steps such as banning the use of Huawei equipment to secure their supply chains, especially for defense-related technologies, said Euom ​​Ieck-chae, a systems security professor at Chonnam National University.

Kim Jung-jin, a professor at the School of Artificial Intelligence at Southwest University of Political Science & Law in Chongqing, China, discussed in detail the privacy risks associated with internet-connected vehicles.

“These include recording driver conversations, continuous filming of the surroundings while driving or parking, as well as the possibility of extracting personal data during servicing or replacing parts,” he said.

Kim noted that the Chinese government says it can address leaks of personal data from connected vehicles with regulations.

“However, the irony is that in China, the government is already using such data from citizens’ connected vehicles for domestic criminal investigations,” he explained.

Clarity was insisted upon

The Korean government and the auto industry have urged the U.S. Department of Commerce to clearly define connected vehicles, focus on high-risk parts and allow time for supply chain adjustments.

“The term ‘Chinese connected vehicles’ is too vague and this ambiguity is a concern for the Korean automotive industry. For example, network communication modules, which allow cars to connect to cellular and Wi-Fi networks to exchange data in real time, could be a serious problem. Major Chinese suppliers such as Quectel and Fibocom dominate this market, and the United States may view their integration into vehicle systems as a safety risk,” explained an expert in the Korean automotive industry.

Korea’s Ministry of Trade, Industry and Energy said it had expressed its concerns to the U.S. Department of Commerce. In a formal statement, the ministry called on the United States to provide a clear definition of connected vehicles, focus regulations on parts and services that pose significant national security risks, and give the industry enough time to adapt its supply chain.

Hyundai Motor Group and the Korea Automobile & Mobility Association also submitted comments to the United States, stating that “It is impractical to adapt the connected vehicle supply chain at short notice. “Such sudden changes can lead to unintended safety problems and significantly increase production costs, disrupting both industry and consumer markets.”

The US Automotive Innovation Alliance and the European Automobile Manufacturers Association reiterated the complexity of the automotive supply chain and called on the US Department to carefully review the proposal.