CHINA WATCH“DeepSeek Is in the Driver’s Seat. That’s a Big Security Problem”
Democratic countries have a smart-car problem. For those that don’t act quickly and decisively, it’s about to become a severe national security headache.
Democratic countries have a smart-car problem. For those that don’t act quickly and decisively, it’s about to become a severe national security headache.
Over the past few weeks, about 20 of China’s largest car manufacturers have rushed to sign new strategic partnerships with DeepSeek to integrate its AI technology into their vehicles. This poses immediate security, data and privacy challenges for governments. While international relations would be easier if it weren’t the case, China’s suite of national security and intelligence laws makes it impossible for Chinese companies to truly protect the data they collect.
China is the world’s largest producer of cars, and is now making good quality, low-cost and tech-heavy vehicles at a pace no country can match. It has also bought European industry stalwarts, including Volvo, MG and Lotus. Through joint ventures, it builds and exports a range of US and European car models back into global markets.
DeepSeek has struck partnerships with many large companies, such as BYD, Great Wall Motor, Chery, SAIC (owner of MG and LDV) and Geely (owner of Volvo and Lotus). In addition, major US, European and Japanese brands, including General Motors, Volkswagen and Nissan, have signed on to integrate DeepSeek via their joint ventures.
Australia is one of the many international markets where Chinese cars have gained enormous traction. More than 210,000 new cars were sold into Australia in 2024, and Chinese brands are set to take almost 20 percent of the market in 2025, up from 1.7 percent in 2019. Part of this new success is due to the government’s financial incentives encouraging Australians to purchase electric vehicles. China now builds about 80 percent of all electric vehicles sold in Australia.
Then, there are global markets where Chinese car brands are not gaining the market share they have in Australia (or in Russia, the Middle East and South America), but where Chinese-made cars are. This is the case in the United States and in Europe, for example. This is because many foreign companies use their joint ventures in China to sell China-made, foreign-branded cars into global markets. Such companies include Volkswagen, Volvo, BMW, Lincoln, Polestar, Hyundai and Kia.
Through its Chinese joint venture, Volkswagen will reportedly partner with DeepSeek. General Motors has also said it will integrate DeepSeek into its next-generation vehicles, including Cadillacs and Buicks. It’s unclear how many such cars may end up in overseas markets this year; that will likely depend on each country’s regulations.
