ARTICLE
3 January 2025

Unauthorized Mapping Activities In China's Automobile Industry

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
On October 16, China's Ministry of State Security highlighted a case where a foreign company, in collaboration with a Chinese company, conducted illegal surveying and mapping within the territory of China under the guise of autonomous driving research.
United States Government, Public Sector

On October 16, China's Ministry of State Security highlighted a case where a foreign company, in collaboration with a Chinese company, conducted illegal surveying and mapping within the territory of China under the guise of autonomous driving research. The mapping data which contains geographic information of specific areas, later identified as state secrets, was transferred overseas, raising significant concerns within the automobile industry. Major Chinese and international automobile companies have denied involvement.

The key issue is that unauthorized processing of mapping data may be considered to pose national security risks. Mapping data can contain sensitive information related to national security, such as high-precision measurements of military sites. In China, to legally conduct mapping activities, entities must: (i) obtain the necessary certificate when processing mapping data, (ii) obtain necessary approval before transferring mapping data overseas; and (iii) adhere to strict confidentiality and security protocols.

In recent years, China has intensified efforts to regulate illegal surveying and mapping activities, especially in the automobile industry. For example, in 2024, the Ministry of Natural Resources released many regulations, such as Strengthening the surveying, mapping and geoinformation security relating to intelligent connected vehicles (July 2024) and Security requirements for processing spatiotemporal data in intelligent connected vehicles (Draft, June 2024).

In light of the above, companies in the automobile industry should take immediate action to ensure compliance and protect national security.

  1. Conduct internal compliance assessments: Determine if operations involve mapping activities or data processing and identify if the data constitutes state secrets.
  2. Implement effective measures: If involved in mapping activities, ensure compliance by partnering with qualified companies, meeting security requirements, and obtaining necessary approvals.
  3. Improve internal compliance systems: Incorporate mapping-related compliance into the overall system, such as conducting data classification and grading, enhancing data security measures, and providing internal training to minimize risks.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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