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China Tightens Rules on Driver Assistance Systems After Fatal Xiaomi Crash

The Ministry of Industry and Information Technology has banned misleading advertising terms, imposed stricter oversight on software updates, and required pre-approval for testing to address safety concerns.

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China Is Cracking Down On Misleading Driver Assistance Marketing: China
A Tesla Model 3 vehicle drives using FSD (Full Self-Driving) in Encinitas, California, U.S., October 18, 2023. REUTERS/Mike Blake/File Photo
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Overview

  • China's MIIT has prohibited automakers from using terms like 'smart driving' and 'autonomous driving' in advertisements to prevent consumer misunderstanding.
  • Automakers must now obtain regulatory approval before conducting over-the-air updates or mass testing of advanced driver assistance systems (ADAS).
  • The regulatory crackdown follows a March 29 Xiaomi SU7 crash that killed three people, with preliminary findings indicating the driver took over control shortly before the collision.
  • Tesla has paused its Full Self-Driving rollout in China and rebranded the feature as 'Intelligent Assisted Driving' to align with the new requirements.
  • Analysts warn the stricter regulations could increase costs, slow technology adoption, and drive consolidation in China's crowded electric vehicle market.