Following Ottawa’s decision to permit a limited number of Chinese-manufactured vehicles in Canada, concerns have been raised about potential data privacy risks. However, for consumers shopping for a new car, this may not be a significant deterrent.
During their visit to the Canadian International AutoShow, Dianne Dougall and Pat Shephard, who were looking to replace their Tesla with a new EV, expressed interest in Chinese-made EVs. They indicated that privacy concerns were not more worrisome than those associated with any other connected vehicle.
Debbie Perriccioli from Waterdown, Ont., also exploring options at the auto show as her lease nears expiration, shared a similar sentiment. She mentioned that privacy is becoming obsolete and would not prevent her from considering a Chinese-manufactured vehicle.
Recent survey data shows that 61% of Canadians polled between Jan. 30 and Feb. 2 supported the introduction of Chinese EVs into the Canadian market. When asked about concerns, more respondents highlighted worries about vehicle quality and impacts on the Canadian auto industry, with privacy and security concerns ranking lower.
Experts interviewed for this report acknowledged that data security is a critical issue for modern connected vehicles, regardless of their country of origin. They emphasized that Canada’s privacy laws are not robust enough to shield consumers from potential data access by the manufacturing country, including China.
‘Computers on wheels’
David Masson, Vice President and Field Chief Information Security Officer at Darktrace, described all vehicles as essentially “computers on wheels” in today’s digital age. He stressed that the vehicle’s origin, whether electric or traditional, is irrelevant concerning data security.
China has enacted legislation requiring cooperation with the government, similar to the Cloud Act in the U.S., which mandates data sharing by American tech firms when requested. Modern vehicles collect extensive data, including location, driving speed, music preferences, and more, posing potential privacy risks.
Opposition to the entry of Chinese vehicles into the Canadian market has been voiced by leaders in the automotive industry. Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, labeled it a “bad idea,” citing concerns about security and trade impacts on domestic vehicles.
No robust system in place
While the Canadian government had initially considered imposing tariffs on Chinese EVs to prevent market saturation, it now asserts that these vehicles must meet Canadian security standards for sale. Public Safety Minister Gary Anandasangaree pledged to establish safeguards to prevent data transmission to China.
Beth-Anne Schuelke-Leech, an associate professor at the University of Windsor and a policy director at the Shield Centre for Automotive Cybersecurity, stressed the importance of stringent policies and penalties to safeguard consumer data. She highlighted the inadequacy of current security measures in protecting privacy.
Currently, BYD is the primary Chinese automaker registered to import passenger cars in Canada, with a presence since establishing a bus assembly plant in Newmarket, Ont., in 2019.
China doesn’t need autos to spy, says analyst
Despite concerns over data security, national security analyst Stephanie Carvin argued that the entry of Chinese vehicles into Canada may not present a new data breach threat. She emphasized the broader impact on economic national security and domestic automobile markets.
Noting state support for Chinese companies like BYD, Carvin highlighted the challenges Canadian manufacturers face in competing with subsidized foreign companies.
