More from the article...

... "We're looking at a few components and some software -- not the whole car -- but it would be some of the key driver components of the vehicle that manage the software and manage the data around that car that would have to be made in an allied country," said export controls chief Alan Estevez at a forum in Colorado.

In May, Commerce Secretary Gina Raimondo said her department planned to issue proposed rules on Chinese-connected vehicles this autumn and had said the Biden administration could take "extreme action" and ban Chinese-connected vehicles or impose restrictions on them after the Biden administration in February launched a probe into whether Chinese vehicle imports posed national security risks.

The comments of Estevez, who is the Commerce under secretary for industry and security, are the most definitive to date about the administration's plans on Chinese vehicles that sparked wide alarm. ...

Cars nowadays are massive data-collection devices.

Multiple cameras to provide the assisted driving capabilities, geolocation capability (documenting where the images were taken by the cameras), etc.

imo, more of a national security issue than a supposedly errant weather balloon.