British firms working for the UK’s military or intelligence services are advising staff not to connect their mobile phones to Chinese-made electric cars over fears that Beijing could steal sensitive national security data.
Executives at two of the nation’s leading defence giants have told The i Paper that the entire sector is taking a “cautious” and “belt and braces” approach to the possibility of the Chinese state spying on staff via the country’s electric vehicles (EVs).
The security clampdown within the UK’s highly secretive defence sector follows revelations from The i Paper that the Ministry of Defence (MoD) has banned cars relying on Chinese technology from sensitive military sites across the country. In some cases, the MoD has asked staff to park their EVs at least two miles from their workplace.
The latest disclosure of security worries relating to Chinese EVs could also raise concern among some EV buyers, who are increasingly turning to brands like BYD because of their affordability and longer range.
The role of Chinese companies and equipment in critical infrastructure was brought sharply into focus after the government was recently forced to take control of British Steel from its Chinese owner, Jingye Group, to prevent it from closing blast furnaces at the country’s last virgin steelmaking site.
It is understood that the UK’s leading military production groups, including BAE Systems, Rolls Royce, and Raytheon, as well as US defence giant Lockheed Martin and French defence and cyber security firm Thales, are among those firms that have taken precautions against the potential for Chinese EVs to spy on their staff.
One UK defence firm executive said: “The sale of Chinese cars is growing in the UK, and we are, rightly, cautious about that. We are making our staff aware of the sensible precautions to take if they choose to buy a Chinese EV.”
Such precautions include not parking in production plant car parks, not discussing their work in the car, and not connecting mobile phones via Bluetooth or a charging cable.
Chinese EV manufacturer XPENG insisted it’s new G6 SUV adhered to all UK and EU privacy laws (Photo: XPENG/PA)Another defence firm source added: “It is safe to assume that every major defence supplier is concerned about the tech in Chinese-built cars.
“In the same way that Government departments and defence firms have long told staff not to plug memory sticks into their work laptops to prevent security breaches, it is a sensible precaution not to plug your phone into your car because all the data could become vulnerable.”
He added: “Not only could your car download your journeys, but it could also scrape your text messages, voicemails, and even sensitive work documents from your mobile. That’s the sort of information the Chinese state might like to get its hands on, so it’s just sensible that the industry takes a belt and braces approach to that threat.”
A spokesman for Lockheed Martin said: “As a global defence and technology leader Lockheed Martin prioritises the safety and security of its facilities, employees, and operations around the world and has a robust, ongoing process to reduce and mitigate risk.
“It would be inappropriate to discuss details of specific measures in place at any of our facilities.”
Defence companies are major espionage targets
Joseph Jarnecki, a research fellow in cyber and technology at the Royal United Service Institute, believes defence contractors are taking a measured and sensible approach to the potential security threat posed by Chinese vehicles.
He said: “In the context where these defence companies are incredibly high value in terms of espionage targets, it’s an entirely reasonable risk management approach to take based on the historical evidence we have of Chinese espionage targeting, for example, intellectual property held by defence companies.”
Following President Donald Trump’s international tariffs, which have resulted in tariffs more than doubling the price of an EV from China in the US, motor industry experts believe the UK could see a flood of cheap Chinese EVs being imported.
Chinese EV brand BYD has become popular (Photo: Jung Yeon-Je/AFP/Getty)While car buyers are increasingly familiar with many of the Chinese marques already present in the UK, such as BYD, Ora, Geely and XPENG, some may not be aware that Chinese manufacturers own brands such as MG, Volvo and Polestar.
A spokesman for XPENG, which recently launched its all-electric G6 SUV in the UK, denied its cars spy on drivers.
He said: “XPENG takes its customers and their data protection seriously. XPENG is fully compliant with UK and EU rules and regulations and is committed to continuously adhering to and complying with the applicable UK and EU privacy laws and regulations.
“To demonstrate our privacy compliance in the UK and EU, we have two globally recognised privacy information management certificates.”
Chung Ching Kwong, a research fellow at the Hong Kong Democracy Council focusing on digital rights and a member of the Inter-Parliamentary Alliance on China, said: “China uses the data it collects for both good and malicious intent, like spying or espionage. Data is considered a strategic resource, and the collection and processing of data are matters of national security.”
Under China’s National Intelligence Law, Chinese companies are required to cooperate with state intelligence work upon request.
However, another expert in cyber security suggested that the Chinese state is unlikely to risk the success of their growing car exports by embroiling itself in an international spying row.
James Bore, managing director of cyber technology firm Bores Group, said: “I am yet to see any evidence that there is malicious software being spread by Chinese cars.
“There are theoretical attacks which allow your phone or your devices to be compromised through plugging them into a charger, but these have been shown under lab conditions, and I have seen no evidence that it has ever actually happened in the wild.
“The moment it does, the Chinese car company market collapses, and that’s not the sort of economic upheaval that China really wants.”
Mike Hawes, chief executive of the Society of Motor, Manufacturers and Traders, said: “All manufacturers with cars on sale in the UK must adhere to relevant regulations on data privacy, and EVs are no different.
“The industry is committed to upholding a high level of customer data protection, including proportionate use of data, including apps and paired mobile phones, which can be removed from cars according to individual manufacturer instructions, giving peace of mind to motorists.”
A spokeswoman for the UK Government said: “This Government has helped develop new international regulations to clamp down on potential threats in vehicle construction, monitor emerging threats and respond to any cyber-attacks.”
BYD, MG, Ora, Geely, Volvo, and Polestar did not respond to requests for comment, nor did the Chinese Embassy in London.
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