China Sets New Rules on Autonomous Driving Claims Following Fatal Xiaomi Crash

China is moving swiftly to rein in how automakers market and deploy advanced driver assistance systems (ADAS), following a fatal accident involving a Xiaomi SU7 electric sedan that reignited public concern over misleading “smart driving” claims.

In a closed-door meeting this week, the Ministry of Industry and Information Technology (MIIT) issued new rules banning the use of terms like “smart driving,” “autonomous driving,” and “self-driving” in vehicle advertisements.

The directive, confirmed by attendees and MIIT’s public statement, affects all automakers operating in China. Companies must now refer to their systems as “combined assisted driving” and are prohibited from implying that vehicles can drive themselves. The crackdown also includes tighter restrictions on software updates, requiring that any over-the-air (OTA) changes to driving-related systems be validated and approved before release. (via CNEvPost)

The catalyst for the regulatory response was a deadly crash in late March involving a Xiaomi SU7. The electric sedan struck a cement barrier at roughly 97 km/h just seconds after the driver took over from the car’s ADAS. The impact triggered a fire that resulted in multiple fatalities.

Although Xiaomi has not been found at fault, the incident fueled public debate over how driver-assistance features are marketed and perceived.

Tesla was also indirectly swept into the regulatory storm. The automaker had recently begun rolling out its Full Self-Driving (FSD) package in China under the rebranded name “Intelligent Assisted Driving.” That rollout was quickly paused after MIIT introduced updated guidelines in February.

Tesla and other manufacturers like BYD, Leapmotor, and Huawei attended this week’s meeting, where MIIT emphasized the need for system clarity, comprehensive testing, and consumer education.

In addition to banning misleading terminology, the government warned automakers against frequent software updates that circumvent safety reviews. Emergency updates, the MIIT said, may need to be treated as recalls or trigger production halts. The move is intended to curb the practice of deploying experimental features to vehicles already in customers’ hands.

While the new regulations may slow innovation and increase compliance costs, experts believe they could ultimately prompt a necessary consolidation of China’s overcrowded auto market and improve long-term safety outcomes for drivers and pedestrians alike.

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