Ban Chinese cars that can spy on Britain, Andy Burnham urged

Chinese cars filled with sensors should be banned from Britain’s most vital industries to prevent snooping by Beijing’s spies, Andy Burnham has been urged. The House of Commons business, innovation, science and trade committee has called on the Government to block digitally connected cars and so-called “internet of things” gadgets made in China from critical businesses and sensitive areas. The MPs also called for Mr Burnham to tackle the growing threat posed by Chinese electric vehicles (EVs) to Britain’s car industry, calling for ministers to unleash tariffs on Beijing’s flood of exports.

The EU has imposed tariffs as high as 35.3pc on Chinese-made EVs and announced new quotas on hybrids. Brussels is pushing the UK to impose similar tariffs as the price of access to vital EU subsidies under the new “made in Europe” scheme. Ministers have so far resisted a similar crackdown. Mr Burnham is under pressure to explain his plans for a closer deal with the EU before a summit in Brussels on Nov 20. Lord Sarwar, the trade minister, has said the UK and EU must “act in lockstep” on Chinese EVs.

The call to ban Chinese cars from sensitive areas came in a highly critical report in which MPs said the Government’s policy on China had been muddled and piecemeal, with some deals waved through and others blocked at the last minute. The report warned Mr Burnham’s government had yet to establish the “rule of the game” to “protect British economic and national security”. The MPs suggested setting out “red zones”, key industries where Chinese influence should be blocked outright, to provide clarity to businesses and investors.

Liam Byrne, the committee chairman and Labour MP fo r Birmingham Hodge Hill and Solihull North, said: “Britain’s businesses cannot plan for the future when the Government keeps making up its China policy as it goes along. “Ministers promised clarity and consistency. Instead, we have opportunities missed, risks unmanaged and decisions left until the eleventh hour.” Chinese-made internet modules have made their way into devices from solar inverters to drones, often sending back key data and signals as part of their function.

However, the data they gather could also be useful for surveillance. A modern car, for instance, might contain dozens of internet-connected sensors, including external and internal cameras. Some self-driving cars, meanwhile, have functions that allow the cars to be driven remotely. The MPs said this capability posed a “potential risk to life”. “The Chinese security services could require China-based manufacturers to grant access to such systems and use this access to disrupt foreign countries’ transport and logistics systems,” the MPs said.

The committee also called for telecoms companies to monitor traffic between connected vehicles and foreign entities in key industries such as the defence sector and emergency services. The US has already banned the use of Chinese connected vehicle software from 2027 and all hardware from 2030. The MPs also called on ministers to begin work on the “preparation of a tariff regime” targeting China, with MPs arguing that Europe had gone “further and faster” in cracking down on Chinese EVs.

Jonathan Reynolds, the Business Secretary, has repeatedly warned that Beijing would retaliate, threatening the exports of some of Britain’s most successful carmakers, such as Jaguar Land Rover. A crackdown on Beijing’s car giants would also hit Mr Burnham’s growth agenda, with Chinese brands proving increasingly popular with British car buyers. The Chinese-made Jaecoo 7, called the “Temu Range Rover” for its similar appearance to the British marque, was the UK’s top-selling car in September.

A Government spokesman said: “Our approach to China is consistent – we will co-operate where we can and challenge where we must.”