Overview

• The Ministry of Industry and Information Technology (MIIT) has prohibited terms like 'smart driving' and 'autonomous driving' in vehicle advertisements to prevent misleading claims.
• Automakers must now secure regulatory approval before deploying over-the-air updates for Advanced Driver Assistance Systems (ADAS) on customer vehicles.
• The regulatory changes follow a fatal March crash involving a Xiaomi SU7, where the ADAS handed control back to the driver seconds before the collision.
• China is also enforcing stricter safety standards for electric vehicle batteries to reduce risks of fires and explosions in the rapidly growing EV market.
• Industry experts predict the new rules will increase compliance costs, slow innovation, and drive consolidation in China's crowded auto sector.