The U.S.-China Economic and Security Review Commission, released its annual report to Congress this month.  The 793-page report responds to the Commission’s mandate to “monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China.” The report is a culmination of a “broad and bipartisan consensus…with all 12 members voting unanimously to approve and submit it to Congress.”

Although the report is detailed and fascinating, there is one conclusion that is relevant to this post—China has a clear advantage over the United States “at each stage of the battery supply chain, ushering in rapid global market share increases for Chinese EV and battery makers.” As a result, “China’s near monopoly on battery manufacturing creates dependencies for U.S. auto manufacturers reliant on upstream suppliers as well as potential latent threats to U.S. critical infrastructure from the ongoing installation of Chinese-made battery energy storage systems throughout U.S. electrical grids and backup systems for industrial users.”

In other words, China’s dominance in manufacturing of batteries that are used for electric vehicles, and for storage of energy, including renewable energy, poses a cybersecurity risk to the United States. To combat the risk, the Commission recommends:

“To protect U.S. economic and national security interests, Congress [should] consider legislation to restrict or ban the importation of certain technologies and services controlled by Chinese entities, including:

  • Autonomous humanoid robots with advanced capabilities of (i) dexterity, (ii) locomotion, and (iii) intelligence; and
  • Energy infrastructure products that involve remote servicing, maintenance, or monitoring capabilities, such as load balancing and other batteries supporting the electrical grid, batteries used as backup systems for industrial facilities and/or critical infrastructure, and transformers and associated equipment.”

Hopefully, Congress will take these threats and recommendations seriously as U.S. consumers buy electric vehicles and expand uses for renewable energy.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.