China Enforces Strict Controls on Smart Driving Technologies

Chinese authorities introduced stringent regulations to control the deployment and marketing of driver assistance systems in response to growing risks of misuse. This decision followed a closed door meeting held by the Ministry of Industry and Information Technology on April 16, 2025, attended by around sixty representatives from major automotive companies. The new rules aim to curb excessive marketing practices and restrict over the air software updates until they undergo thorough verification and evaluation.

Government Tightens Regulations on Smart Driving Technologies

The Ministry of Industry and Information Technology has urged automakers to refrain from using terms such as “autonomous driving”, “smart driving”, and “advanced smart driving” and to adopt “assisted driving” instead to avoid misleading claims. It has also introduced stringent rules for over the air software updates, requiring that they be deployed only after rigorous validation and stipulating that any emergency update be handled as a vehicle recall or a suspension of production until all defects are addressed.

In a brief statement, the ministry emphasized that companies must clearly define each system’s operational boundaries and safety procedures, inform customers of any modifications or enhancements, and assume full responsibility for product quality and compliance with safety standards.

Need for Stringent Controls to Enhance Safety Awareness

The importance of these measures became all too clear on March 29, 2025, when a Xiaomi SU7 overturned and caught fire on a highway in Anhui Province, killing three people. The tragedy unfolded after the driver assistance system malfunctioned seconds before the collision. Fu Bingfeng, deputy secretary general of the China Association of Automobile Manufacturers, emphasized that these technologies must be accompanied by targeted awareness campaigns and guidance programs for first time buyers and elderly drivers.

Zhang Jinhua, president of the China Society of Automotive Engineers, highlighted the frequent confusion between driver assistance systems and autonomous driving. Some drivers have over relied on automation and relinquished manual control, leading to numerous accidents and growing public concern. Industry experts such as J.D. Power and McKinsey & Company report that the smart driving experience now influences 14 percent of purchase decisions, with more than three quarters of users demanding features like automated highway steering and intelligent parking, an indication of strong consumer demand despite uneven levels of awareness.

Impact of Regulations on Consumers and the Automotive Industry

The new regulatory framework marks a competitive shift toward AI integration in vehicles, following the March 1 announcement on product admission, recalls, and over the air (OTA) upgrades. It establishes three main pillars: equipping manufacturers with comprehensive safety management systems that define system boundaries and emergency response protocols; requiring the registration of technical performance standards with relevant authorities; and implementing a dual recall mechanism to ensure effective defect tracking and remedy.

The Electric Vehicle Union projects that the share of passenger cars equipped with advanced driver assistance systems will grow from 55.7 percent in 2024 to approximately 65 percent by 2025. However, complying with more stringent standards will increase R&D and testing costs, especially for smaller manufacturers, some of which may be forced to withdraw from the market or seek mergers. Researchers at the Pangu Institute argue that stronger product reviews and standardized processes will ultimately bolster consumer confidence and reduce accidents or misuse linked to software failures.

Earlier, companies such as Haval and Landto reaffirmed at recent model launches that they remain committed to preserving the driver’s primary control while offering auxiliary assistance features. Brand officials also highlighted that accurately defining automation levels must be paired with clear explanations of system limitations and a precise allocation of responsibilities between manufacturers and users to prevent marketing claims that outpace current technological capabilities.