Weeks after the Canadian government announced its decision to permit a limited number of Chinese-manufactured vehicles into the Canadian market, concerns have been raised regarding potential data privacy risks. However, this apprehension may not deter consumers seeking new vehicles, as indicated by attendees at the Canadian International AutoShow.
During their visit to the AutoShow, Dianne Dougall and Pat Shephard, who were exploring options for an electric vehicle (EV) to replace their Tesla, expressed interest in Chinese-made EVs. They emphasized that privacy concerns were not a major issue compared to other connected vehicles, noting that data storage across various countries, including the United States, should also be a consideration.
Similarly, Debbie Perriccioli from Waterdown, Ontario, who is nearing the end of her vehicle lease, stated that privacy was becoming obsolete and would not prevent her from considering a Chinese-manufactured vehicle.
According to a survey conducted by Leger between January 30 and February 2, 61% of Canadians supported the introduction of Chinese EVs into the market. Respondents cited concerns about vehicle quality and impacts on the Canadian auto industry more frequently (both at 38%) than worries about privacy and security (33%).
Experts interviewed by CBC News highlighted that data security remains a significant issue for modern vehicles, irrespective of their country of origin. They pointed out that Canadian privacy laws may not adequately protect consumers from potential data access by the manufacturing nation, including China.
David Masson, Vice President and Field Chief Information Security Officer at Darktrace, stated that all vehicles now function essentially as computers on wheels, emphasizing that the source of the vehicle, be it electric or traditional fuel-powered, is less relevant.
Recent laws in China and the United States mandate cooperation between companies and governments on data sharing, raising concerns about data privacy. Critics like Pierre Poilievre and Doug Ford have denounced the deal with China, labeling Chinese-made EVs as potential surveillance systems.
The automotive industry leaders, including Brian Kingston of the Canadian Vehicle Manufacturers’ Association, expressed reservations about allowing Chinese vehicles into the market, citing trade challenges and security issues. They questioned the acceptance of connected vehicles while other technologies are deemed a threat.
In response to growing concerns, Ottawa has assured that Chinese vehicles must adhere to Canadian security standards before being sold in the country. However, experts like Beth-Anne Schuelke-Leech noted the absence of a robust system to ensure data security and privacy protection for consumers.
Currently, BYD appears to be the only major Chinese automaker registered to import passenger cars into Canada, although the extent of this development is unclear due to the company’s previous establishment of a bus assembly plant in Newmarket, Ontario, in 2019.
While the Canadian government has faced scrutiny over national security from other Chinese companies like ByteDance’s TikTok and Huawei, the debate over Chinese-made vehicles is not considered a new data security breach. Analysts suggest that the primary concerns revolve around economic national security and the potential impact on Canada’s domestic automobile market.
They argue that Chinese state support for companies like BYD could create an uneven playing field for Canadian manufacturers, adversely affecting competition. The entry of subsidized Chinese vehicles could pose challenges for the domestic auto industry in Canada.