welcome to Highway Herald your road map to the latest in Auto The Echoes of the Cold War may have faded but the contest for Global Supremacy persists now primarily between the US and China this rivalry extends Beyond mere economics and Military might permeating various Global spheres many believe that the ongoing electric vehicle EV revolution could be a GameChanger in this race for Global dominance there are five compelling reasons why Chinese EVS could potentially pose a threat to US national
security let's delve into [Applause] them reason number five data collection by Chinese EVS electric vehicles EVS are among the most Advanced Technologies available today they are packed with cuttingedge technology including semiconductors and other components essential for autonomous driving and overall EV functionality these vehicles can collect a vast amount of data including location and environmental details which is a significant National Security concern for us officials as there's a susp
icion that this data could easily find its way to Beijing us Commerce Secretary Gina Rondo recently expressed concerns about the proliferation of Chinese EVS in the west labeling it a serious threat to the security of the United States and the European Union she questioned do we want all that data going to Beijing while some might dismiss this as a conspiracy theory it's worth noting that the Chinese government has already prohibited Tesla EVS in certain regions due to similar concerns this move
can be seen as a countermeasure the Biden Administration has long warned about Chinese ev's ability to gather and transmit vast amounts of data overseas they have been working on a Model to prevent foreign adversaries from accessing highly sensitive personal data moreover they have not considered lifting the additional 25% tariff on Chinese cars a measure imposed by the Trump Administration 5 years ago reason number four the global market will be ruled by Chinese EVS China's technological advan
cements in recent decades have been remarkable spanning various Industries with the automotive sector being no exception recognizing the inevitability of electrification China invested heavily in battery technologies today Chinese Battery Technology and EVS are on par with if not Superior to their Western counterparts crucially Chinese manufacturers have mastered the art of producing affordable EVS a feat that many traditional automakers are still struggling with Tesla CEO Elon Musk acknowledged
that Chinese electric cars are on the brink of becoming a dominant Global Force capable of outpacing all Global competitors Tesla excluded provided there are no trade barriers Chinese EV companies have already made significant inroads in various parts of the world including Europe and Latin America according to the National passenger car information exchange Association China exported over 1.2 million EVs and plug-in hybrids last year with 38 % of them Landing in Europe with markets like the UK
Belgium and France already embracing Brands like byd it's clear that European traditional automakers are feeling the heat but it's not just about the cars contemporary erex Technology Company Limited catl a Chinese battery manufacturer often hailed as a global leader in Innovative new Energy Technologies has already commenced battery production in Germany and supplies major companies like BMW Bosch and Mercedes-Benz group the China Association of automobile man manufacturers reports a substanti
al 35.8% increase in the production of electric and plug-in hybrid vehicles last year totaling 9.59 million units given these figures it's evident that the Biden Administration will need to devise new strategies to prevent China from becoming the global leader in the EV industry reason number three the US encourages allies to avoid Chinese Tech Chinese technology has been infiltrating various Industries over the years causing concern for the US government as key allies adopt these new technologi
es the US is Keen on persuading its allies to avoid Chinese Technologies they've had some success convincing European allies to reject huawei's 5G equipment domestically the Federal Communications Commission has banned the sale of Huawei and ZTE communication equipment and restricted some Chinese video surveillance systems the US is striving to limit China's access to cuttingedge technology crucial for creating Advanced chips used in electric vehicles for instance Nvidia is prohibited from selli
ng its most advanced chips to China and key allies like Japan and the Netherlands have been persuaded not to sell essential chipm equipment allies have their reasons to fear China's expansion particularly in the automotive sector the European Union is investigating China's State support for major EV manufacturers like byd and gie Legacy car makers especially those from Germany and France are concerned about the influx of inexpensive Chinese EVS that could potentially devastate the European autom
otive industry the US and European Union are working on a new Global Steel Arrangement that would compel both sides to use sustainable energy sources termed as green steel and green aluminum this act would allow the US and its allies to pose significant challenges to China's steel production which is primarily powered by coal remember China is the world's largest steel exporter reason number two Ford and catl joint venture suspended a year ago Ford unveiled ambitious plans to build a $3.5 billio
n battery plant in Michigan the goal was to manufacture batteries in-house rather than sourcing them predominantly from China like many traditional automakers Ford is grappling with acquiring new EV Technologies leading the blue oval company to collaborate with catl one of the world's leading battery manufacturers the plan was to commence battery production by 2026 leveraging Chinese capital and Technology this would allow Ford to circumvent the inflation reduction act which mandates that batter
y materials like precursors and cathodes must be produced in countries with free trade agreements ftas with the United States and prohibits the procurement of batteries and key minerals and materials from foreign entities of concern fe's associated with China Russia Iran and North Korea Ford's move was met with considerable criticism from the Republican majority in the House of Representatives eventually the house Ways and Means Committee and the house select committee on the Chinese Communist P
arty initiated an investigation into the joint vent between Ford and catl as expected Ford decided to suspend the project citing strong opposition from lawmakers as the primary reason for the suspension reason number one resource control by China control over resources is the Crux of the matter this is why many Americans express reservations about electric cars China holds the majority of the resources required for the production of electric cars not only is China the world's leading exporter of
Steel but it also controls most of the socaled rare earth metals chemical elements like lithium neodymium dysprosium graphite and others these 17 chemical elements are critical for the production of batteries and electric motors without these rare earth metals the EV industry would cease to exist according to the most recent data China's share in the global production of these elements is around 60% furthermore China also Imports and processes most of the remaining resources leading to control
of over 90% of all rare earth metals currently produced worldwide in such circumstances it's clear that the US government and its allies have a lot to figure out if they want to prevent China from monopolizing batteries and EVS in general if not Chinese EVS could become more than just a threat impacting both the economy and National Security speaking of National Security the fact that China controls critical resources has another even more direct impact these rare chemical elements aren't just i
ntegral to electric cars they are used in defense Technologies as well they can be found in various Advanced weapons such as missiles and tanks but more importantly they are essential for defense communication systems in other words the EV industry is just the tip of the iceberg while the Chinese technological expansion has a far-reaching impact on the global order thank you for watching don't forget to subscribe to Highway Herald for the latest vehicle updates and upcoming videos see you next t
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