Literature Review: Does Chinese history on security concerns, including privacy and data violation, contribute to its failed efforts to sell cars in the USA market

Literature Review

The topic of failed efforts among Chinese automobile companies in prevailing and succeeding in the American market has been explored and researched by many scholars. According to McKinsey report (2019), the road for Chinese automobile companies has been characterized by failed overall sales, slow down in major markets such as the American consumer market, and stiff competition from other global automobile brands such as the USA, German, and Japan brands (McKinsey & Company, 2019). This report also shows that it is not the end road for China, as some companies such as Volvo are performing in the market. According to Teece (2019), Volvo is a Swedish brand with a Chinese parent; however, purely made Chinese vehicles are not performing in the untapped American market (Teece, 2019).

Prevalent reasons developed by authors include differing cultures; hence consumer behavior varies as well as their car preferences and tastes (Johnson & Chang, 2018), the Chinese vehicles lacking to meet the American environmental sustainability standards (Platt, et al., 2017) and the continued Sino-US conflict that has affected the two countries’ political, economic, technological, and socio-cultural spheres. Scholars explore the Sino-USA trade conflict, showing the trade imbalances presented in both countries. For instance, according to Yu & Zhang (2019), the trade conflict presented is due to the Chinese imposed subsidies and high import tariffs by the government, causing trade deficits in Trump’s administration perspective  (Yu & Zhang, 2019). However, a significant reason that is minimally researched and explored is the politically-oriented aspect of having the USA government limiting Chinese investments, especially in the automobile industry, due to national security concerns.

Understanding this background of the trade conflict and the principal reasons researched helps find a research gap. This is the minimal concentration of data security issues in the wake of electric vehicles and digitalization processes in the automobile industry, which awakens the historical foundation of security concerns provided by other Chinese investments and companies where they have been accused of data privacy violations. According to Chen (2019), China has been linked and accused of major data breaches in handling American citizen’s personal data, including cases of hacking and acquiring American citizen’s full names, Social Security Numbers (SSNs), job and income data, passport numbers, and flight histories (Chen, 2019). Moreover, over 18 million copies of Standard Form 86 harboring similar personal data have been lost and linked with Chinese involvement (Chen, 2019). The worry is that the data collected is used to spy on American citizens, presenting adverse implications such as cyber offenses, attacks, and national security threats. According to Sacks (2020), data security risks continue to fuel the US-China technological entanglement, where the distinction of data privacy and national security has become blurred (Sacks, 2020). With data being a powerful tool among countries in the international system and fighting for hegemonic power and status, these data breaches can highly compromise a country’s national security when another country accesses personal data history.

This information is relevant to the failed efforts in selling cars in the American market due to the modern automobile trend of developing electric vehicles and installing digitalized payment, booking, and calling methods. One can simply use a mobile application, contact, book, provide personal information on traveling details, and make payments using the digitalized smart options, a trend highly adopted and used by many Americans. These channels provide personal information, and with the previous history of data breaches and violations with the Chinese government, national security is at stake and more efforts made to penetrate the American automobile industry become futile (Teece, 2019).  Hence, the research gap presented in the study of the central issue of failed efforts among Chinese automobile companies in prevailing and succeeding in the American market focusing on the political and technological aspect including national security concerns, data breaches, and violations, justifies the need for further and future research on this topic.

Major strengths identified in the research methodologies used in the reviewed studies, mostly qualitative research, provide detailed and comprehensive information to explain the issues at hand with refined data displayed in themes. Thematic analysis such as data breaches and collection by the Chinese government and companies (third parties) is discussed extensively, then another Sino-US conflict theme and environmental sustainability. Others, such as (Platt, et al., 2017), evaluating if Chinese vehicles meet the environmental and sustainability American standards integrate the quantitative research, which provides for an inward and in-depth analysis of a single theme evaluating basing on specificity and eliminating overgeneralization. In addition to being a strength, it is a potential weakness presented in qualitative research used. With quantitative research, objectivity and accuracy of findings are guaranteed. Many of the methodology designs used in the study and literature reviewed are qualitative, as quantifying such a topic in numbers can become difficult.

Researching if Chinese history on security concerns, including privacy and data violation, contribute to its failed efforts to sell cars in the USA market is a gap presented in other researches conducted on the topic and minimally explored. Moreover, the subject becomes crucial as, in the contemporary world, we live in a digitalized world, where information and data are the new powerful tools needed and exploited for the success of companies, businesses, and the security of nations.

References

Chen, M. S. (2019). China’s Data Collection on US Citizens: Implications, Risks, and Solutions. Journal of Science Policy & Governance, 15(1), pp; 1-14.

Johnson, W. C., & Chang, L.-C. (2018). A COMPARISON OF CAR BUYING BEHAVIOR BETWEEN AMERICAN AND CHINESE PEOPLE LIVING IN NORTH AMERICA: AN EXPLORATORY STUDY. The Wall Street Journal, https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.119.490&rep=rep1&type=pdf

McKinsey & Company. (2019). McKinsey China Auto. https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/China%20auto%20consumer%20insights%202019/McKinsey-China-Auto-Consumer-Insights-2019.pdf: McKinsey & Company.

Platt, S. M., Haddad, I. E., Pieber, S. M., Zardini, A. A., Suarez-Bertoa, R., Clairotte, M., . . . Baltensperger, U. (2017). Gasoline cars produce more carbonaceous particulate matter than modern filter-equipped diesel cars. Scientific Reports volume, Vol 7(4926).

Sacks, S. (2020). ADDRESSING THE DATA SECURITY RISKS OF US-CHINA TECHNOLOGY ENTANGLEMENT. Brookings.Edu, https://www.brookings.edu/wp-content/uploads/2020/11/Samm-Sacks.pdf.

Teece, D. J. (2019). China and the Reshaping of the Auto Industry: A Dynamic Capabilities Perspective. Management and Organization Review, Vol 15(1), pp; 177-199. doi: 10.1017/mor.2019.4.

Yu, M., & Zhang, R. (2019). Understanding the recent Sino-US trade conflict. China Economic Journal, 12(2), 160-174.