China’s MIIT issued updated draft guidelines mandating ‘combined assisted driving’ terminology and local data storage, impacting both domestic and foreign automakers.
China’s Ministry of Industry and Information Technology (MIIT) has released new draft guidelines on June 4, 2024, tightening regulations for autonomous vehicles. The guidelines require automakers to use specific terminology like ‘combined assisted driving’ and store vehicle data locally, signaling a push for greater control over the rapidly evolving sector.
New regulations for autonomous vehicles in China
China’s Ministry of Industry and Information Technology (MIIT) issued updated draft guidelines on June 4, 2024, aimed at tightening regulations for autonomous vehicles. The guidelines mandate the use of ‘combined assisted driving’ terminology and require automakers to store vehicle data locally. This move comes shortly after Tesla’s Full Self-Driving (FSD) launch in China on April 29, which saw a 2.5% stock dip post-announcement.
Impact on domestic and foreign automakers
Domestic firms like Li Auto and Xpeng have already rebranded their ADAS features to ‘L2++’ to comply with the new terminology rules. Meanwhile, Baidu secured approval to expand its robotaxi fleet in Wuhan, showcasing the government’s support for controlled AV deployments. Foreign automakers, particularly Tesla, face heightened challenges in adapting to these evolving compliance demands.
Global implications
The new regulations reflect China’s broader strategy to balance innovation with regulatory control under its ‘Zhiji Xingqiu’ ICV development plan. Analysts are watching closely to see if other regions like the EU or U.S. will adopt similar frameworks, potentially leading to fragmented standards that could hinder global AV innovation.
In 2021, China introduced similar data localization requirements for smart vehicles, emphasizing the importance of data security. These measures have gradually shaped the competitive landscape, favoring domestic players who can navigate the regulatory environment more effectively. The current guidelines build on this foundation, further tightening control over the sector.
The rapid adoption of autonomous driving technologies in China mirrors the transformative impact of mobile payment systems like Alipay and WeChat Pay in the 2010s. These innovations reshaped consumer behavior and laid the groundwork for today’s AI-driven advancements. The new regulations aim to ensure that the next wave of technological progress aligns with national priorities around safety and data sovereignty.
