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Last Updated on: 18th April 2025, 12:15 pm
Last fall, Ford CEO Jim Farley revealed that he had been driving a Xiaomi SU7 sedan for the past 6 months. He told the press he didn’t want to give it up because the car was so much better than anything Ford or any other company selling cars in the US is manufacturing. One of the features of the SU7 is its advanced autonomous driving technology.
On March 29, 2025, three women riding in a Xiaomi SU7 operating in semi-autonomous mode were killed when the car slammed into a concrete structure at a road construction site and burst into flames. According to several Chinese news reports, the women were unable to exit the vehicle as it burned. According to Car News China, Xiaomi said in a statement after the accident that the car was traveling at 116 km/h (72 mph) and using the company’s NOA (Navigation on Autopilot) intelligent driving assistance system when it approached a construction zone. The lane was closed with barriers, diverting traffic to the opposite lane. The system detected the obstacle, issued an alert, and began decelerating. The driver then took manual control, continued braking and steering, but ultimately collided with a concrete barrier post at an estimated 97 km/h (60 mph).
China Bans Autonomous Driving Claims
Unlike the US government, which has done virtually nothing to regulate so-called autonomous driving systems, the Chinese government has reacted swiftly in the aftermath of the Xiaomi crash. Citing multiple Chinese news sources, Electrive reports that China will now ban car manufacturers from using the phrases “intelligent driving” and “autonomous driving” when advertising driver assistance functions. In addition, they will no longer be allowed to conduct public beta tests, and any over-the-air updates can only be transmitted after validation has been completed.
These guidelines on vehicle advertising were announced by the Ministry of Industry and Information Technology on Wednesday at a meeting with almost 60 representatives of car manufacturers. The agency reportedly held a closed door meeting with 20 companies this week at which it announced the stricter rules for the introduction and marketing of driver assistance software. Such systems are becoming a major marketing point in the highly competitive Chinese car market. In particular, Huawei, Xpeng, Li Auto, and Nio, are constantly releasing new functions. In February, BYD announced that its assistance system, called God’s Eye, would be integrated into even its least expensive cars in future.
According to industry experts, the government is concerned that users are not sufficiently aware of the limits of such systems and that the companies’ marketing could mislead consumers. MIIT wants to tighten the regulations for smart cars in several areas. For example, the practice of beta test programs for pioneer users, an approach pioneered by the smartphone business that has become common in the auto industry as well, will no longer be permitted. In the future, public tests will have to go through the official approval channels, which means the companies will be obligated to carry out sufficient testing of their own and obtain pre-authorization from the authorities before introducing their systems. In addition, “the limits of system functions and safety measures must be clarified.”
Truth In Marketing
China also wants to strictly regulate marketing terminology. Car manufacturers will be required to avoid using terms such as self driving, automated driving, autonomous driving, intelligent driving, or advanced intelligent driving in their marketing material. Instead, they must use the precise term “assisted driving by level…” and state the level of autonomous driving level from 1 to 5 being promised.
MIIT is working to ensure that automakers reduce the number of software updates and only pass these on to vehicles after sufficient checks have been carried out. In addition, vehicles that require software updates via emergency OTAs are to be treated as recalls or production stops in China in the future, according to the minutes of the closed door meeting that have been published.
In addition, MIIT wants to put an end to vehicle functions that work without the driver’s supervision, such as parking in a car park and calling a car by pressing a button or remote control. Going forward, driver monitoring systems will no longer be able to be deactivated and must immediately recognize when drivers take their hands off the steering wheel. Removing both hands from the steering wheel will now activate the vehicle’s brakes and hazard warning lights.
The initial reaction from Chinese automobile associations welcomed the MIIT initiative. Fu Bingfeng, Deputy Secretary General of the China Association of Automobile Manufacturers (CAAM), commented that the “popularization of driver assistance technologies must go hand in hand with the advancement of user awareness.”
Zhang Jinhua, President of the China Society of Automotive Engineers, also commented that the current maturity of driver assistance technology has deviated from the dynamics of marketing. “The blurring of boundaries in marketing and the distortion of user perception have become a growing problem, with some drivers confusing driver assistance with autonomous driving.” Road accidents caused by drivers who misuse driver assistance functions have occurred time and again and have caused great concern in society, he said
Timing is Important
Car News China and other news organizations see the announcement of the stricter regulations as a signal of “the government’s determination to regulate this sector more stringently.” The timing, shortly before the start of the Shanghai Auto Show, is likely significant. Typically at that show, autonomous driving functions are heavily promoted. China has also just introduced stricter safety standards for batteries that are due to take effect in 2026. According to industry observers, the new policies could accelerate the pace of consolidation in the Chinese auto industry.
None of the news reports from China this week mention what effect the new regulations will have on Tesla. At first glance, they would seem to prohibit the use of both “Autopilot” and “Full Self Driving” by the company in its advertising or promotional material. Certainly the action by MIIT has put the kibosh on the idea of “hands free driving,” at least for systems that are at Level 2 or Level 3 on the autonomous driving scale.
If this were to happen in the US, Elon Musk would be strutting about with his 6-foot chainsaw and screaming about “government overreach” and a “woke mind virus.” The avowed “free speech absolutist” has nothing to say, however, when it is the Chinese government doing the talking. Nothing says “hypocrite” quite like someone who adjusts his message to the circumstances instead of being steadfast in his beliefs.
Beta testing on public roads has always been fraught with danger, since other drivers are not aware they are taking part in the test and so cannot opt out. The question now is whether other countries will follow China’s lead with regard to regulating autonomous driving technology.
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