Chinese regulators have released draft guidelines governing the overseas transmission of data collected by smart vehicles, a move that signals potential regulatory flexibility for global automakers, including Tesla.

The proposed framework outlines specific conditions under which automobile manufacturers can transfer data abroad, focusing on safeguarding national security and personal privacy while maintaining industry competitiveness.

The draft, issued by the Cyberspace Administration of China (CAC), sets out a risk-based classification system for automotive data.

Under the proposal, data categorized as 'general' may be exported with self-assessments, while 'important' or 'sensitive' data will be subject to additional scrutiny and potential security assessments.

The classification aims to streamline data compliance while retaining oversight on issues deemed critical by state authorities.

The guidelines specify that certain types of location and image data—particularly involving sensitive infrastructure or individuals—could be restricted from export.

However, the new rules also carve out mechanisms for companies to submit applications for review, including provisions for scenarios in which data is essential for improving autonomous driving systems and software performance.

The draft regulations arrive amid growing interest in advanced driver-assistance systems (ADAS) in China, the world’s largest automotive market.

Tesla, which operates a factory in Shanghai and has been seeking approval to introduce its Full Self-Driving (FSD) features in the country, is expected to benefit from the regulatory clarification.

FSD relies on real-world driving data for algorithm training and feature refinement, typically processed in U.S.-based data centers.

Industry observers note that the draft framework may mark a shift from China's previously stringent data localization rules, which have delayed the rollout of some international technologies.

Several global automakers and Chinese electric vehicle firms, including BYD, NIO, and XPeng, have expressed interest in clearer data-sharing protocols to support software-driven vehicle development.

Public consultation on the proposed guidelines will remain open through late July 2025.

The CAC is expected to finalize the rules after evaluating feedback from industry stakeholders and cybersecurity experts.

Companies currently operating in the Chinese automotive market are advised to review their data governance and compliance strategies in light of the proposed changes.