Opinion | American Opportunism in the name of 'National Security' strikes again

By Tom Fowdy

Today the US Department of Commerce announced it would be imposing a ban on "Chinese-made" hardware and software embedded inside electric vehicles, citing "national security concerns." The move is yet another by the Presidential administration towards advocating the market exclusion of Chinese EVs from the United States, having already slapped a 100% tariff on their import, as well as other supply chain components. In practice, there are no such cars being made in the US which use this technology. However, as has been pointed out by commentators, the measures are designed to facilitate larger supply chain exclusion by preventing China from exporting them via third countries, namely Mexico.

Again, we are seeing the United States abuse the concept of national security for clear protectionist gain. The mainstream media likes to report America's often unfounded allegations as "fears" or "concerns" as if they are somehow legitimate, but in reality, such moves are little more than blatant opportunism which has served as a convenient stick for everything the US does not like from China and wishes to exclude from its market, if not take control of where possible. Hence, scores of Chinese products and technologies are accused baselessly as being assets of espionage, without any evidence whatsoever, only so the US can ban them for its own political gain.

When it comes to Chinese electric vehicles, the US was always intent on bringing the banhammer down on them. The US auto industry is notoriously protectionist, and as it happens some of the key automobile manufacturing states in America, such as Michigan, are decisive swings states that will determine the outcome of the election in November. The Democratic party is determined not to appear soft on American jobs, especially when up against the extreme protectionism of Donald Trump. Thus, the US has become hysterical about Chinese manufactured electric vehicles, with China having become the world's largest exporter of automobiles and quickly overtaking US capabilities in this field.

So, what does the US do? Despite being one of the staunchest advocates of the "free market", the reality is that the United States aims to maintain a monopoly at all costs by forcefully undermining its competitors and one way it does this is by market exclusion. In this case, Chinese vehicles are not in fact in the US automobile market at all, yet it appears to be the objective of the administration to first stop them from getting there, both directly and indirectly, and then moreover to force a broader "supply chain exclusion" by making it impossible for such cars to be legally used in the US in the first place. By banning Chinese software and hardware in such cars, it is directly attacking the supply chains and therefore preventing "mediator" countries such as Mexico, from producing them and exporting them accordingly.

The US has had considerable power in utilizing the "North American Free Trade Agreement" (NAFTA), as the dominant partner, in order to keep China out. This has included the addition of a "poison pill clause" in the Trump era which bans Canada and Mexico from forging an FTA with what is deemed to be a "non-market economy" (China) and gives the US the right to terminate the entire agreement if it does, and likewise, it is using tariffs and other means so that it regionalizes and dominates supply chains to its own political control. Hence, Canada has become the most willing partner in this effort by quickly mimicking US tariffs on Chinese EVs, and likewise aiming to exploit and utilise its own critical minerals to build this "parallel supply chain."

Likewise, as based on comments by Jake Sullivan, the US aims to try and "multilaterialize" attacks on Chinese EVs too, in a similar way to the US campaign to ban Huawei in the west. However, I am less inclined to believe that this is successful because cars are not critical communications networks, the "spying and remote control" allegations are simply mass hysteria and obvious opportunism, and moreover they are a public good that is in short supply, with few alternatives and is critically important amidst the fight against climate change. It is wholly disadvantageous and self-defeating to shut out cost-effective and high-quality electric vehicles when few options are available. The US looks after its own and expects others to look after the US's own too, even to the point of demanding others go without simply to serve Washington's interests.

The author is a well-seasoned writer and analyst with a large portfolio related to China topics, especially in the field of politics, international relations and more. He graduated with an Msc. in Chinese Studies from Oxford University in 2018.

The views do not necessarily reflect those of DotDotNews.

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