Chinese electric vehicle exports rise amid the oil crisis, posing a dilemma for importing countries

China is exporting electric vehicles of all types in staggering numbers. Export volumes of battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrid electric vehicles (HEVs) all reached highs in 2025, with 2026 data through March indicating continued growth. If oil disruptions persist due to the war in Iran, it may provide an additional, powerful tailwind for Chinese EV exports. 

Democracies around the world, however, face an uneasy and complicated dilemma when it comes to importing Chinese-made “connected vehicles,” or vehicles that are internet-connected and subject to potential cyber threats. Countries that refuse to import Chinese vehicles, especially electric vehicles, risk compounding economic damages from an extended oil crisis and stalling progress against other security threats, including climate change. On the other hand, large-scale imports could undermine domestic industries, lead to consolidation of yet another supply chain node in China, and expose cyber vulnerabilities to exploitation by a powerful adversary. 

Today’s oil shock may accelerate global dependence on Chinese connected vehicles, forcing democracies into a tradeoff between short-term relief and long-term cybersecurity and industrial risks. When it comes to grappling with Chinese automotive exports, there is no easy answer, but countries can put measures in place to mitigate risks. 

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