China on Friday unveiled draft guidelines aimed at regulating the export of automotive data, a move that could provide a framework for companies such as Tesla seeking to transfer vehicle-generated data abroad.
The Ministry of Industry and Information Technology (MIIT) outlined circumstances under which companies would or would not be required to undergo security assessments for cross-border data transfers. The new draft, open for public feedback until July 13, is seen as a critical step toward clarifying how China will manage the sensitive issue of data generated by smart vehicles.
According to the guidelines, data collected in China for the purpose of developing autonomous driving or advanced driver assistance systems (ADAS) will be classified as “important” and require regulatory approval before it can be sent overseas. This category encompasses data considered sensitive to national interests or public security.
However, the draft also proposes exemptions for companies based in free trade zones. If the data they process is not specifically restricted within the zone, such firms would not need approval to export it, the ministry said.
The proposed regulations are highly relevant to Tesla, which has stored data from more than 2 million electric vehicles in China at its Shanghai data center. The U.S. automaker has long sought permission to export that data back to the United States to improve its autonomous driving software, which is developed using AI models trained on large volumes of driving data.
U.S. restrictions also bar Tesla from training its AI software within China. CEO Elon Musk previously described the situation as a “quandary” that limits the performance of Tesla’s Full Self-Driving (FSD) system on Chinese roads.
The draft rules come as Chinese regulators seek to balance national security concerns with a desire to maintain an attractive business environment for foreign automakers and tech companies investing in smart mobility.