Tesla Breaks Barrier in China: FSD Software Likely to Enter Market After Inspection Approval

Model 3 and Model Y Produced at Shanghai Gigafactory Pass the Inspection
Tesla, the Only Foreign Company to Pass

For the first time, Chinese authorities have granted Tesla a compliance certificate for data security, which is the first for a foreign company. This green light paves the way for the introduction of Tesla’s Full Self-Driving (FSD) software in China.

On the 28th, Chinese media outlets such as The Daily Economy and Maeil Business Newspaper reported that according to the First Notification on Four Compliance Requirements for Automotive Data Security announced by the China Association of Automobile Manufacturers (CAAM), Model 3 and Model Y produced at Tesla’s Shanghai Gigafactory had passed the inspection.

The four criteria set by Chinese authorities include anonymization of facial information and other information outside the vehicle, non-collection of cockpit data, in-vehicle processing of cockpit data, and notification of personal information processing.

In addition to Tesla, 76 models from six companies, including BYD, Li Auto, Lotus, Hozon, and NIO, passed the inspection. Tesla is the only foreign company among those that passed the inspection, increasing the likelihood of FSD’s introduction in China.

The China Business News pointed out that Tesla’s passing of this inspection “has laid the groundwork for promoting FSD’s entry into the Chinese market,” quoting a Tesla official as saying that “restrictions on the use of FSD are being lifted in various regions, including Shanghai, a manufacturing hub in China.”

Tesla launched its FSD software four years ago, but it could not be introduced in China due to the country’s data regulations. TData collected in China needs to be transferred overseas to train the algorithms necessary for autonomous driving technology,

Elon Musk, CEO of Tesla, who has been seeking approval for overseas data transfer from Chinese authorities, hinted at ongoing discussions this month on X (formerly Twitter), saying, “Tesla may soon allow Chinese customers to use FSD.”

Earlier in the day, Musk made a surprise visit to Beijing and met with Chinese Premier Li Qiang. Foreign media reported that the meeting was likely about obtaining approval related to FSD.

Li told Musk during their meeting, “Tesla’s development in China can be seen as a successful example of China-U.S. economic and trade cooperation,” adding that “only equal cooperation and mutual benefits can serve the fundamental interests of both countries.” Musk responded by saying, “The Tesla Shanghai Gigafactory is the most productive factory in Tesla, thanks to the hard work and wisdom of the Chinese team,” and “Tesla is willing to deepen cooperation with China and achieve more mutually beneficial results.”

Musk’s visit to China coincided with the recently opened Beijing Motor Show, China’s largest motor show, but Tesla did not participate in this year’s event.