China Tightens Grip on Autonomous Driving: Tesla’s FSD Faces Fresh Delays

China’s intelligent driving industry is on the verge of leaving behind its “blind sprint” phase.

Recently, the Equipment Industry Division of the Ministry of Industry and Information Technology (MIIT) issued the Notice on Further Strengthening the Management of Market Access, Recalls, and Over-the-Air Software Updates for Intelligent Connected Vehicle Products (hereinafter referred to as “the Notice”).

Notice on Further Strengthening the Management of Market Access, Recalls, and Over-the-Air Software Updates for Intelligent Connected Vehicle Products

It requires automakers to conduct integrated testing of intelligent driving functions and to clearly define system boundaries and safety response mechanisms.

According to the Notice, automakers must not engage in exaggerated or misleading promotion of intelligent driving features, and they are expected to take primary responsibility for ensuring production consistency and product safety.

Shortly afterward, a leaked screenshot of a closed-door meeting summary began circulating on social media. Several items were widely interpreted within the industry as a direct crackdown on the current trend of overhyped assisted driving marketing and the “launch first, patch later” approach to deploying new technologies.

Closed-Door Meeting Minutes

The new regulations don’t just tighten control over advertising—update frequencies for assisted driving features are also being restricted.

Not long after the Notice was issued, we received feedback from Tesla sales representatives: the rollout of FSD (Full Self-Driving) in China has been put on hold.

A Conversation with a Tesla Salesperson

When Tesla first started rolling out FSD in China, we immediately went to test it and found its performance surprisingly impressive. We quickly placed an order for a Model 3 and paid an additional 64,000 yuan for the FSD option.

We've received our Model 3

However, more than a month has passed since we took delivery of the vehicle, and it has yet to receive the official FSD update. The timing of the rollout remains uncertain.

In fact, Tesla has also quietly adjusted its terminology around intelligent driving. On its Chinese website, the feature previously labeled “Full Self-Driving” has been renamed “Intelligent Assisted Driving”—a subtle but clear response to regulatory sensitivities.

Tesla China Official Website

According to automotive bloggers, Chinese regulators have temporarily suspended approvals for OTA updates related to advanced driver-assistance systems (ADAS) until August. This means that planned system upgrades from automakers like NIO, Li Auto, and Xpeng will be delayed across the board.

For China’s intelligent driving industry, this “pause” signals a collective and deliberate course correction.

In recent years, assisted driving systems have rapidly advanced, with OTA updates becoming a key tool for enhancing user experience and accelerating product iteration. But as development has sped ahead, problems such as unclear system capability boundaries, insufficient safety validation, and overstated marketing claims have begun to surface.

Xpeng XNGP

This shift may cause short-term disruptions: users will face longer waits for updates, product launch timelines may slow, and promotional messaging will need to be significantly toned down. However, in the long run, this could prove to be a pivotal moment in the transformation of intelligent driving into a mature industrial product in China.

As regulations tighten and industry standards take hold, the race may no longer be about who moves the fastest, but about who is best prepared—and who can go the distance.