China is “deeply concerned” by a formal investigation launched by the United States into Chinese car imports, as Washington fears its technology could be used for intelligence gathering, Reuters reported.

China’s Ministry of Commerce also said on Monday it was closely monitoring the investigation launched by the US and was ready to take “decisive measures” if necessary.

Last Thursday, the White House announced that the administration of President Joe Biden will begin an investigation into possible risks that Chinese car imports may pose to national security and will introduce certain restrictions on their purchases by Americans.

The Democratic White House administration said in a press release that the investigation, which will be conducted by the Commerce Department in Washington, is necessary because cars collect “vast amounts of sensitive data about their drivers and passengers, and they regularly use their cameras.” and sensors to record detailed US security information.”

“China’s policies could flood our market with their vehicles, increasing risks to our national security,” the statement quoted President Joe Biden as saying. “I will not allow this during my tenure,” he stressed.

White House officials told reporters it was too early to say what measures might be taken against Chinese car imports, but no decision had yet been made on a possible ban.

The US has opened a new investigation into risks from Chinese companies

Biden called the investigation an “unprecedented action” to ensure that cars on US roads that “come from countries of concern like China” do not undermine US national security.

Chinese electric car makers send most of their exports to Southeast Asia, the Middle East and Europe, and last year the EU launched its own investigation into how Chinese subsidies to automakers affect competition in the European market.

BYD, which last year overtook Tesla to become the world’s best-selling automaker, has repeatedly said it has no plans to enter the U.S. market.

The United States previously banned Chinese telecommunications companies from operating in its market and deemed Huawei and ZTE “threats” to national security, forcing American service providers to remove equipment made by them from their networks.

Instead, the White House recalled Thursday that U.S. and other automakers face significant restrictions in China as the Beijing government tightens data management rules and companies in most sectors are now required to obtain permission from communist authorities before transferring data abroad.

Last May, Chinese authorities also tightened regulations on the auto industry, including a proposed ban on the ability of smart vehicles to transmit data abroad directly, forcing them to use local cloud storage services.