There are also serious security concerns. Modern connected vehicles collect substantial amounts of data, including location information, driving patterns, and personal details provided during purchase and financing. Vehicles manufactured by companies subject to Chinese government influence could theoretically be equipped with capabilities beyond standard telematics systems.
The precedent of the US Federal Communications Commission’s prohibition of Huawei and ZTE telecommunications equipment on national security grounds suggests that Western governments should take such technology transfer concerns seriously.
This is particularly true given the technological capabilities of modern vehicle systems, which can be accessed remotely. While this serves legitimate purposes, such as in recovering a stolen vehicle, it also represents a potential vulnerability if controlled by potentially adversarial parties.
These concerns take on even greater relevance given China’s growing power within the global EV market. BYD, Beijing’s leading EV manufacturer, exported approximately one million vehicles globally in 2025, marking a milestone in the company’s international expansion. It has established a significant presence in multiple international markets, undercutting local auto production, and is investing in overseas production facilities.
Reports indicate that Ford Motor Company is exploring partnerships with BYD for battery supply to its overseas manufacturing facilities. These discussions, though, remain preliminary and have drawn criticism from US government officials concerned about supply chain security.
China maintains significant advantages in battery production costs through vertical integration, scale, and domestic policies supporting the industry. The country produces approximately 70pc of global batteries and controls 60pc of critical battery minerals. Is Canada really sure if it wants to be furthering Chinese dominance, particularly through preferential tariff rates?
Carney’s agreement with China reflects his stated foreign policy approach of engaging pragmatically with the world “as it is” rather than as Canada might wish it to be. The oil export component of his deal is economically rational and strategically sound. However, the electric vehicle import concessions are troubling due to their implications for car industry competitiveness and short- and long-term national security.
Carney’s strategy might well be to diversify Canada’s economy away from reliance on the United States. It would be highly ironic if that left his country vulnerable in critical areas to the Communist rulers of Beijing.
Diana Furchtgott-Roth directs the Center for Energy, Climate, and Environment at The Heritage Foundation, where Krishna Mehta is a former member of the Young Leaders Program
