Chinese Expansion to U.S. Auto Market Raises the Stakes for Vehicle Data Ownership

By Richard Ward, Executive Director, American Vehicle Owners Alliance

In 2021, Chinese authorities barred certain American vehicles from military facilities and other sensitive locations over concerns that onboard cameras and sensors could capture information about secure sites. The decision to restrict U.S.-manufactured vehicle operations sent a straightforward message: Beijing considers vehicle-generated data a national security asset worth protecting. In the years since, China has formalized that position into national policy, imposing strict rules on how vehicle-generated data is stored, reviewed, and transferred.

Congress is now grappling with a similar recognition. 

Lawmakers are already taking steps to keep Chinese connected vehicles out of the U.S. market because of national security concerns. They should also establish a clear principle for vehicles already on American roads and for any future entrants: vehicle owners should control the data their vehicles generate.

The DRIVER Act offers a framework for doing that, based on a simple principle: My Vehicle, My Data.

That principle applies regardless of who built the vehicle.

Vehicle data reveals how Americans live

Connected vehicles produce some of the most detailed information Americans generate.

They can reveal where people live, work, worship, seek medical care, send their children to school, and travel each day. They also capture driving habits, charging patterns, device connections, and interactions with onboard systems.

The Federal Trade Commission’s recent action involving General Motors and OnStar shows why this matters. Regulators alleged that precise location and driving-behavior data from millions of vehicles was collected and shared in ways consumers did not fully understand. Some of that information allegedly reached consumer reporting agencies and influenced insurance decisions.

The DRIVER Act addresses the gap

Congress is considering several proposals aimed at restricting or banning Chinese-connected vehicles. Those efforts address an important national security concern, but they do not fully answer the question of who controls the data generated by those vehicles.

The DRIVER Act would establish basic rules for all vehicles sold in the U.S.:

  1. Vehicle owners should have secure, real-time access to the data generated by their vehicles.
  2. Companies tied to foreign adversaries should be barred from owning, controlling, accessing, transferring, or monetizing vehicle data from U.S. drivers.
  3. Sensitive information—including precise location data, driving behavior, biometric information, charging data, and sensor-generated information—should require affirmative consumer consent before it is collected, transferred, or used commercially.

The window to act is now

Congress is debating these important policy issues at a time when transportation technologies are becoming increasingly connected and data-driven.

Concern about the issue spans party lines. During a recent Senate Commerce Committee hearing, lawmakers warned that modern vehicles rely on sophisticated sensors that collect enormous amounts of information and that such data could pose risks if it falls into the wrong hands. Witnesses called for federal frameworks covering transportation technology, privacy, interoperability, and national security.

The issue also extends beyond today’s debate. 

Chinese automakers haven’t yet established a significant foothold in the U.S. market, but that window may be closing. Auto analyst Michael Dunne recently predicted that Chinese vehicles will eventually reach the American market in some form, saying that “by 2030, we will see some form of Chinese cars on American roads. One way or another, they’ll find their way in.” The Economist recently reached a similar conclusion, reporting that Chinese competition will ultimately reach the American market despite current barriers and restrictions. 

Whether Chinese firms enter through imported vehicles, domestic manufacturing, software platforms, or supply-chain partnerships, Congress should establish clear rules governing vehicle-generated data before those relationships become embedded in the transportation system. 

Congress does not need to know exactly how that will happen to recognize that Chinese automakers and technology providers are pursuing global expansion. We must set the rules before they’re deployed in the transportation ecosystem, not after.

Connected vehicles already generate enormous amounts of information. The real question will be who controls it.