Canadians buying a Chinese electric vehicle could be putting their movements and conversations within reach of Beijing, experts warned at a Sept. 29 panel discussion.
“The issue is where the data is stored and what could be done with it,” Margaret McCuaig-Johnston, a senior fellow at the University of Ottawa’s Institute for Science, Society and Policy, said at the event.
In January, Ottawa reached a deal with China to allow an initial annual quota of 49,000 Chinese-made EVs into Canada at a tariff rate of 6.1 per cent. This replaces the 100-per-cent surtax Canada had applied to Chinese-made EVs since October 2024.
The government presented the agreement as a way to attract Chinese investment, expand consumer choice and restore Chinese access for Canadian agricultural exports.
But at the livestreamed event, hosted by the Macdonald-Laurier Institute think tank, panelists warned that Chinese EV imports could undermine personal privacy and national security while also jeopardizing Canada’s manufacturing sector and U.S. trade ties.
Consumers attracted by lower prices should not be responsible for assessing the national security implications of their purchase, said McCuaig-Johnston.
“It’s an issue for the Canadian government,” she said.
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, expressed deep concern about Ottawa’s lack of action on the matter.
“The fact that we’re allowing these [Chinese vehicles] in but have put no protections in place, that to me is a huge, huge risk,” he said.
Where the data goes
Canadian demand for electric vehicles is growing. In 2025, about 170,000 EVs were sold in Canada, up from just 7,000 in 2015.
Chinese EVs pose a risk because of auto manufacturers’ obligations under Chinese law, said McCuaig-Johnston, a former senior federal official who worked on Canada-China science and technology co-operation.
She warned that Chinese authorities can compel manufacturers to disclose information about drivers and their surroundings, including information passed through a vehicle’s cameras, microphones and navigation systems.
“They want minute information on what’s going on in Canada,” she said.
The Office of the Privacy Commissioner of Canada has also identified risks involving connected vehicles, while cautioning that those risks are not confined to cars manufactured in any one country.
In an April briefing, the office said manufacturers’ obligations under foreign laws could make Canadians’ information accessible to overseas law enforcement and national security authorities.
“To fully assess the privacy implications of Chinese EVs, the Office would have to analyze the specific model(s) of the vehicles, contractual arrangements, and legal requirements in the other implicated jurisdiction,” the briefing said.
McCuaig-Johnston called for Canadian storage of vehicle data and for restrictions protecting military bases and government buildings. She said information about which companies visit federal departments or which ambassadors meet Canadian officials should not be accessible to a foreign state.
“We need to have these rules in place,” she told listeners. “They’re not in place.”
Beyond surveillance
Remote access could also be used to disrupt transportation and electricity supplies, warned Brenda Shaffer, an energy and foreign policy specialist at the U.S. Naval Postgraduate School.
“In the United States, our military runs on civilian supply lines,” she said. She noted the risk of Chinese vehicles used in key shipping and transport roles being remotely disabled.
Kingston, of the Canadian Vehicle Manufacturers’ Association, urged Ottawa to follow Washington’s approach to connected-vehicle technology.
Since 2025, the United States has restricted certain vehicle software and hardware linked to China or Russia from being sold in the United States. The software limits apply from model year 2027, while the hardware limits apply from model year 2030.
“The U.S. has rules in place … because the Americans identified a risk,” said Kingston.
“And I have to assume if the U.S. sees a risk — given that we have an integrated industry, shared roads and highways — we would have the same concerns with the risk that these vehicles pose.
“And yet, we haven’t even attempted to put in place any rules or restrictions around them.”
Transport Canada has published vehicle cyber security guidance. But Kingston’s criticism concerns the absence of specific restrictions on Chinese connected-vehicle hardware and software.
“We need to put in place rules regarding Chinese connected vehicle software and hardware,” he said.
An industrial choice
Chinese EV imports also threaten the manufacturing capacity that Canada depends on for both its economic and defence security, says Kingston.
He described China’s industrial model as “scale, dump, and destroy”: Beijing subsidizes production, exports excess capacity, and leaves other countries increasingly dependent on Chinese manufacturing.
Canadian Affairs has previously reported on the risks posed by Chinese EV imports. Some economists emphasize lower prices for consumers, while others warn about manufacturing losses stemming from dramatically asymmetric levels of economic intervention.
“[In China], there’s not just a central government incentive to support industry,” Philippe Rheault, director of the University of Alberta’s China Institute, said in a May interview with Canadian Affairs.
“Right now, each [Chinese] province is trying to grow its own champion [automaker].”
Trump administration officials have criticized Canada’s decision to admit Chinese EVs, amid concerns the deal could give Chinese automakers a broader foothold in North America. The United States maintains a 100-per-cent tariff on all Chinese-made EVs.
“I think [Canada] will live to regret the day they partner with China in bringing in their vehicles,” U.S. Transportation Secretary Sean Duffy said in January.
Kingston, for his part, says it is imperative Canada maintain access to the U.S. auto market.
“ We have to have access to the U.S. market, and that access depends on an aligned approach,” said Kingston.
“If the Americans are taking an approach with respect to China to keep Chinese vehicles out, we have to do the same, or we put our market access at risk.”
