Tesla has paused its limited-time trial of Full Self-Driving (FSD) software in China just days after launch, citing newly introduced regulations that require automakers to obtain approval before issuing over-the-air updates involving advanced driver assistance features.
The company confirmed the suspension in a comment posted to Weibo, saying it is “actively advancing the process” and will resume the rollout “as soon as everything is ready.”
The trial began on March 17 for vehicles equipped with Tesla’s latest hardware, HW4, but was halted after a notice from the Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation (SAMR). The updated rules require official clearance for changes to “major technical parameters,” mandate accident reporting for driver-assistance systems, and call for automakers to file recall plans if defects are identified. These requirements apply to both HW3- and HW4-equipped models.
The regulatory shift puts Tesla’s FSD system in a difficult position. In the US, the system is trained using large volumes of driving data collected from Tesla’s fleet—a practice that is restricted in China under the country’s data governance laws. Tesla’s inability to tap into its local driving data has made it harder to fine-tune the system for Chinese traffic conditions.
To navigate these constraints, Tesla is working with Baidu, one of China’s top tech companies, to localize FSD features. The collaboration is expected to focus on high-definition mapping and system adjustments in line with local traffic behavior and regulatory requirements.
Tesla still aims to launch a full version of FSD in China later this year, though it has not committed to a specific timeline. Similar trials have been conducted in the US, where the system performs without reliance on precise maps and benefits from localized training.
The outcome of Tesla’s approval process could have broader implications for the automotive industry. While Tesla remains a global leader in electric vehicle sales, it is facing mounting competition in China from homegrown manufacturers like BYD, which outsold Tesla during recent quarters.