The House Homeland Security Committee has launched a formal investigation into BYD, the Chinese automaker and key Apple supplier, requesting documents as part of a broader probe into national security concerns related to Chinese-backed transportation firms operating in the United States.
Congress Seeks Transparency on BYD’s U.S. Operations
In a letter addressed to BYD Americas CEO Stella Li and co-CEO Patrick Duan, the committee called for detailed records regarding the company’s corporate structure, data security practices, and operational footprint in the United States. The lawmakers cited BYD’s growing presence in the American electric bus market as a potential vector for foreign influence and cybersecurity vulnerabilities.
Although BYD spun off its U.S. electric bus unit as RIDE in 2023, it remains wholly owned by China-based BYD, which lawmakers say places it under Chinese law—obligating the company to cooperate with state intelligence and security services.
“The Chinese Communist Party is our greatest adversary, and we must identify and mitigate threats posed by companies under its influence,” said Rep. Carlos Gimenez (R-FL), chair of the subcommittee on transportation and maritime security.
Security and Influence in the Spotlight
BYD’s U.S. business has expanded rapidly since its 2013 opening of an electric bus factory in Lancaster, California. The company has reportedly spent more than $1.7 million lobbying state officials since 2014 and was awarded a $30 million California grant in 2023 to expand its manufacturing facility for electric school buses.
However, its Chinese ownership continues to raise alarm bells in Washington. The committee is demanding access to:
- A list of all contracts, grants, loans, and tax incentives received by BYD and RIDE since 2018.
- Ownership breakdown and communication with lobbying firms.
- Cybersecurity audits and data storage practices.
- Details on all electric school buses under contract or deployed in the U.S.
BYD has not confirmed receipt of the letter and declined to comment as of May 20.
Legislative Moves Target Chinese Tech Influence
This inquiry follows two China-focused bills recently passed in the House. One prohibits federal agencies from procuring batteries from six Chinese firms with links to the Chinese Communist Party (CCP), while the other directs the Department of Homeland Security to investigate foreign identity theft and influence operations. Both measures are currently under Senate review.
Lawmakers say the BYD probe is part of a wider effort to reduce dependence on Chinese state-linked firms in the U.S. transit and infrastructure ecosystem.
BYD’s Global Expansion and Strategic Role
Globally, BYD has grown into one of the largest electric vehicle manufacturers, temporarily surpassing Tesla in late 2023 as the world’s top EV seller. Founded as a lithium-ion battery supplier, BYD has expanded into car and bus production and remains a key supplier to firms like Apple — even producing components such as MacBook trackpads in Vietnam.
Warren Buffett’s Berkshire Hathaway invested $232 million in BYD in 2008, once holding as much as 20% of the company’s Hong Kong shares before reducing its stake below 5% in 2023.
Next Steps and Deadline
The House committee has given BYD a June 9 deadline to produce the requested documents. The outcome could significantly impact the future of BYD’s U.S. electric bus operations and potentially shape broader policy around foreign participation in American transit infrastructure.
As geopolitical tensions mount and scrutiny over CCP-linked firms intensifies, BYD finds itself at the center of a growing national security debate—one that could define the future of foreign electric mobility in the United States.
