House Select Committee On The CCP Holds Hearing On China's Auto Threat To America

In just five years, China has become the world's largest auto exporter, shipping six million vehicles abroad in 2023.

Chinese suppliers control more than 70% of the global market for the cellular modules that connect vehicles to networks.

It is believed that Beijing could cut off the supply of cellular modules in a crisis, leaving American automakers unable to finish building vehicles.

There is a risk that hidden malware in Chinese-made vehicle components could be used to disable fleets of cars and trucks.

China's domestic automakers produce 31 million cars a year, while domestic demand is flat at around 25 million, with the excess being dumped on global markets.

Between 2021 and 2024, China's auto exports surged by over 300%.

In 2024, China sold two-thirds of all electric vehicles globally, while the U.S. sold about 10%.

Electric vehicles are predicted to account for 60% of global new car sales by 2040.

Mexico is now China's largest automotive export market.

A dependency on China for cellular modules is a much more severe and broader threat than dependency on rare earths.

China could insert malware into cellular modules via firmware updates, allowing it to disable critical infrastructure like vehicles, cranes, financial terminals, and pipelines.

The timeframe to counter China's dominance in the cellular module market is estimated to be one to three years before Western companies are irreversibly damaged.