China’s Ministry of Industry and Information Technology (MIIT) has announced stricter rules for the marketing and deployment of advanced driver assistance systems (ADAS) after a deadly crash involving Xiaomi’s SU7 sedan. Following the incident, which involved a fatal accident after the driver resumed control from the ADAS, China has prohibited automakers from using terms like “smart driving” and “autonomous driving” in vehicle advertisements. This new directive was shared in a meeting with nearly 60 car manufacturers to address growing concerns over the safety of these technologies.
Safety Concerns Rise After Fatal Incident
The deadly crash involving Xiaomi’s SU7 has sparked greater scrutiny of advanced driver assistance systems. In the incident, the vehicle crashed and caught fire shortly after the driver took manual control from the system. Early investigations point to the transition between automated and manual control as a potential factor in the accident, raising alarms about the reliability and safety of current ADAS technologies.
The MIIT’s response comes in the wake of these safety concerns. The ministry has implemented rules that prohibit the marketing of vehicles equipped with ADAS features under misleading terms. “Smart driving” and “autonomous driving” will no longer be allowed in advertisements, as these terms have led to confusion regarding the capabilities of such systems.
Tighter Regulations on Software Updates
In addition to the new marketing restrictions, the MIIT has further clarified regulations regarding over-the-air (OTA) software updates for vehicles. Automakers are now required to undergo extensive testing and secure official approval before releasing OTA updates related to driving software. This is aimed at preventing manufacturers from using OTA updates to hide defects or avoid accountability for safety issues.
By imposing these rules, the MIIT intends to ensure that any changes to the driving software are thoroughly tested to guarantee the safety of the vehicles and prevent any future accidents. The regulations underscore the need for transparency and accountability in the development and deployment of smart driving technologies.
New Standards for EV Safety
The MIIT’s efforts extend beyond ADAS regulations to include new standards for electric vehicles (EVs) and plug-in hybrids. As China continues to dominate the global EV market, stricter safety rules are being implemented to address concerns over battery-related risks. Starting in July 2026, all EV and plug-in hybrid batteries will need to meet new technical standards designed to reduce the risk of fires and explosions caused by “thermal runaway.” These new regulations will require rigorous testing to ensure that EV batteries can withstand conditions that typically lead to overheating and fires.
Impact on China’s EV Industry
These new safety regulations come as the EV sector continues to expand rapidly in China. Electric vehicles now make up more than half of all vehicle sales in the country, with automakers like BYD, Leapmotor, and Toyota offering affordable ADAS-equipped models to capture a larger share of the market. However, experts predict that the increased scrutiny could lead to higher costs for manufacturers and potentially slow down innovation, which might prompt a consolidation of China’s oversaturated auto industry.
Tesla’s Strategy in China
Tesla, a key player in the global EV market, has also been impacted by the tightening regulations. The company recently announced plans to release its Full Self-Driving (FSD) feature in China, but only after it has completed the necessary regulatory approval processes. This decision comes after Tesla’s customer support team confirmed a temporary pause on a free trial of the FSD software. Tesla has promised to expedite the approval process for the feature, which uses generative artificial intelligence to handle complex traffic conditions. However, Tesla faces significant challenges in China due to local data laws that prevent the company from using data from its 2 million EVs in the country to train its systems.
Local Regulations and Autonomous Driving in Chinese Cities
In addition to national rules, more than 50 Chinese cities, including Beijing and Wuhan, have introduced their own regulations governing autonomous driving and intelligent connected vehicles. These city-specific rules focus on infrastructure requirements, operational management, and standardized testing protocols. This demonstrates China’s ongoing commitment to advancing self-driving technology while ensuring that safety and regulatory compliance remain at the forefront.
China’s tightening of regulations on smart driving technologies signals a shift toward greater accountability and safety in the rapidly evolving EV and ADAS markets. The government’s new directives are a response to growing concerns about the safety of these technologies, particularly following the tragic Xiaomi SU7 incident. As China continues to lead in electric vehicle production, these new regulations will shape the future of smart driving technology, aiming to protect consumers and ensure the responsible development of autonomous systems. Automakers, including Tesla, will need to navigate these changes carefully to continue their operations in one of the world’s largest automotive markets.
