By FREDA LEWIS-STEMPEL
Cheap Chinese cars might not take over British roads if Donald Trump has anything to do with it.
The US President is reportedly set to push for a ban on Chinese-made cars in the UK over security concerns as part of the ongoing trade negotiations between the two countries.
A well-placed White House source told the The i that a demand of this nature from the Trump administration could 'potentially come up in follow-up discussions' focused on the new UK-US trade deal.
In January, the Biden Administration barred vehicle software and hardware from China over 'grave national security risks', effectively outlawing Chinese-made cars from the US.
Currently, the UK has no ban proposed on private Chinese cars or tech, with a government spokesman telling This is Money 'Chinese EVs have not been a topic in these negotiations'.
However, the recent trade deal - which lowered US import tariffs on British-made products - included strict security requirements surrounding UK supply chains. And if these are adhered to, the influx of budget Chinese cars into the UK could be stalled.
US President Donald Trump could 'potentially' push to ban Chinese cars in the UK due to 'security measures' as UK-US trade deal details are ironed out
The source said Trump is yet to make a public position on the ban of Chinese cars in the UK but that 'it is fair to say it's something that could potentially come up in follow-up discussions based on the agreement text'.
They pointed to Section Four of the agreement text which refers to 'strengthening alignment and collaboration on economic security'.
The trade deal expands that 'both countries intend to strengthen cooperation on economic security, including by coordinating to address non-market policies of third countries' and that they 'intend to cooperate' on the 'effective use of investment security measures' and 'export controls'.
A government spokesman added: 'We will continue to relentlessly pursue the UK's national interest, this is not about undermining our relationships with other countries.'
However, in contrast to the well-placed White House source a Government spokesman told This is Money that 'Chinese EVs have not been a topic in these negotiations' yet
Parliament was recently warned by the former head of MI6 that 'Chinese cars are computers on wheels' and that China could 'switch off Britain's traffic lights and immobilise London' because its companies control crucial technology in the UK.
During the Coalition on Secure Technology, Sir Richard Dearlove, the former head of MI6, and veteran diplomat Charles Parton issued the stark warning.
It follows the Ministry of Defence reportedly banning electric vehicles with Chinese components from sensitive military sites across the UK in April due to cybersecurity fears.
A leaked security notice revealed that the MoD has banning any sensitive conversations from happening inside the vehicles as it is concerned that inbuilt microphones might be recording and transmitting conversations.
But a Department for Business and Trade spokesman said: 'In line with our long-term, consistent approach, trade and investment with China remain important to the UK.
'We are continuing to engage pragmatically in areas that are rooted in UK and global interests and co-operate where we can, compete where we need to, and challenge where we must.'
The US moved to ban Chinese-made software and hardware in January, with the effective end of Chinese car sales in the US coming into effect from 2027
How many Chinese cars are already in the UK?
If the Government does follow US's lead it could send the price of Chinese cars in the UK soaring, just as the market is poised for an influx of affordable motors made by Chinese car manufacturers.
Chinese cars are new to the UK market, but are making waves for the tech, luxury and safety they offer at a price that undercuts many European manufacturers.
This is Money recently reported that registration figures for 2024 show a 14 per cent surge in sales of models from the four major Chinese makers now available in the UK: BYD, MG, Omoda and Ora.
These made up 5 per cent of all new cars bought in Britain last year, representing almost 100,000 motors entering the road, with most of these being electric vehicles.
By the time the UK's ban on the sale of new petrol and diesel cars comes into force in 2030, Chinese manufacturers are predicted to account for a quarter of the UK's EV market representing 400,000 cars on our roads, according to Auto Trader's Road to 2030 Report.
Thirteen out of the 66 EV car brands on sale in the UK are from Chinese manufacturers, including BYD, Geely, MG, Ora, Polestar, Volvo and XPENG.
BYD currently holds the same 1.8 per cent sales share as Elon Musk's Tesla, which has been operating here for 12 years, despite BYD only being available in the UK for two years.
And in March 28,883 Chinese EVs were sold - making up 7.5 per cent per cent of the EV market.
In January Commerce Secretary Gina Raimondo told Reuters: 'It's really important because we don't want 2m Chinese cars on the road and then realise... we have a threat'
Days before President Donald Trump entered the White House for his second term, the outgoing Biden administration finalized new rules for prohibiting Chinese and Russian-made tech in connected cars, including cars made in those countries.
Issued by the US Department of Commerce, a complete ban on 'connected Chinese and Russian cars from model year 2027, even if those vehicles are produced in the US' will be introduced in two years.
There's also a ban on the sale or import of any connected vehicle software or hardware systems originating from China or Russia from 2027 and 2030 for the respective technologies.
At the time Commerce Secretary Gina Raimondo told Reuters: 'It's really important because we don't want two million Chinese cars on the road and then realise... we have a threat.'
Both Chinese software and hardware found in cars are believed to be a threat. This includes connected tech that's become standard in new cars such as Bluetooth, Wifi and cellular
A number of models from US and German-owned manufacturers are currently built in China and sold in the US, as well as models from brands owned by Chinese conglomerates like Polestar and Volvo.
The US therefore, and any home turf manufacturers such as Ford, have just two years to remove its connected supply chain from China.
This includes connected tech that's become standard in new cars such as Bluetooth, Wifi and cellular components.
Last October Polestar, the Swedish automaker owned by China's Geely, warned that without changes the Commerce rule would 'effectively prohibit' it from selling vehicles in the United States.
However, while the forthcoming rules close the door on Chinese brands producing cars in the US or skirting around the 100 per cent tariffs levied on Chinese EVs, Trump has muddied the water by saying he wants both Japanese and Chinese automakers to build cars in the US.
Adding confusion into the mix, Trump has twice said that Chinese automakers would be welcome to invest in the US, saying: 'I'll tell [Chinese automakers] if they want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can'
Marking the first 100 days in office of his second term, Trump told supporters at Macomb Community College on 27 April he wants foreign automakers to invest in US production again.
His welcoming of Chinese car makers echoes other comments he made the year before on the campaign trail.
Trump told a crowd in Dayton, Ohio in March 2024: 'I'll tell [Chinese automakers] if they want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can.'
As of February, the Trump Administration hadn't made its security stance entirely clear, and his April speech would suggest a more lenient approach than his predecessor.
However if the White House is looking to pressure the UK into rejecting Chinese cars due to security worries it would suggest that the US Government will push ahead with the incoming bans on its own turf.
Sir Richard Dearlove, the former head of MI6, and veteran diplomat Charles Parton warned the Government that China could 'switch off Britain's traffic lights and immobilise London' because its companies control crucial technology in the UK
As well as Sir Richard Dearlove and veteran diplomat Charles Parton briefing MPs on Chinese tech security issues, other leading figures have warned about the threat to the UK from Chinese tech.
Former Conservative Party lead Sir Iain Duncan Smith told The i: 'The US under the previous Biden administration took a very important decision to ban electric vehicles from Chinese manufacturers from 2027. This decision is critical as it is about national security concerns.
'The Trump administration is now leaning on its allies, particularly the UK, to follow suit and do the same.'
The Member of Parliament and prominent China critic informed LBC in 2023 that he was 'reliably told' that cars used by the government had to be stripped and a tracking device was found inside that was 'tracking where the Prime Minister was going.'
Luke de Pulford, executive director of campaign group the Inter-Parliamentary Alliance on China, said: 'This would be a victory for common sense.
'The EU, US, Canada have all imposed bans on Chinese EVs to protect their industries and defend against security threats. It is good to see us acting in concert with our closest allies.'
However, China criticised the US-UK trade deal, with its Foreign Minister telling the Financial Times: 'Cooperation between states should not be conducted against or to the detriment of the interests of third parties.'