Tesla has paved the way to commercialize its Full Self-Driving (FSD) system in China.

In this regard, smart cars that have been restricted in terms of driving, parking, and other operations in key areas, public institutions, and airports in China are expected to be able to operate without restrictions.

Major Chinese media reported on the 28th thatTesla has become the first foreign car company to pass China's data security inspection.This news was reported on the 28th.

■ Tesla Model Y/Model 3 Passes China's Data Security Inspection

Tesla's Model Y and Model 3, produced at the Gigafactory in Shanghai, have passed China's four-point safety requirement inspection for car data processing.

The companies that passed the inspection conducted by the Chinese authorities this time are Tesla, NIO, BYD, Hozon, Lotus, and Leapmotor, a total of six companies (76 vehicles in total).

With this inspection passing, Tesla is nowallowed to introduce its FSD software in China.This has been made possible.

Tesla launched its FSD software about four years ago, but it was unable to commercialize it due to Chinese government regulations.

However, this inspection passing is expected to facilitate smooth negotiations for Tesla to transfer data collected in China to the United States.

This is because to train the algorithms necessary for autonomous driving, it is necessary to transfer various data obtained from driving, including geographical and topographical information collected in China, to the United States.

This is a significant achievement for Elon Musk (Tesla CEO, hereinafter referred to as Musk), who has been seeking data transfer approval from the Chinese authorities.

■ Will Chinese customers be able to use FSD?

Musk visited China on a private jet on the 28th and met with Premier Li Qiang to discuss this matter.

Musk had previously cancelled a meeting with the Indian Prime Minister about a week ago.

No matter how fast the Indian market is emerging, from Musk's perspective,the commercialization of FSD in China was a more pressing need.This is how it is analyzed.

However, it has been reported that a visit to India for the Indian market is being prepared.

The announcement of the inspection passing of Tesla's Model Y and Model 3 on the same day Musk met with China's Premier Li Qiang is seen as an indication that some kind of agreement has been reached.

It appears that discussions on Tesla's expansion of investments in China were also held in exchange for easing restrictions on Tesla within China.

Prior to this, Tesla had been unable to transfer data collected in China to the United States since 2021 due to Chinese regulations.

■ Tesla Released from Restrictions in China? Expectations for Improved Performance and Investment Expansion

If Tesla's driving restrictions in China are lifted and FSD is commercialized, there areexpectations that the current slump in performance will recover quickly.This is coming out.

The fact that restrictions are being lifted in various parts of China, including Shanghai, as a result of passing the inspection can be seen as evidence of this.

An industry insider commented that because Tesla passed the authoritative standards in China regarding vehicle data safety, it would be beneficial for lifting driving restrictions on Tesla in expressways, public institutions, and airports.

The four requirements set by the Chinese authorities in this inspection are notification of personal information processing, in-vehicle processing of driver seat data, non-collection of driver seat data, and anonymization of facial information outside the vehicle.

■ Premier Li Qiang Promises a 'Better Environment'

During this meeting, Premier Li Qiang stated that 'China's large-scale market has always been open to foreign companies,' and emphasized that 'China does what it says,' conveying a message of conviction.

He also stated that 'China will ensure a good environment for foreign companies to invest in China with peace of mind.'

In response, Musk stated that the Tesla Gigafactory in Shanghai is one of the most successful factories among Tesla factories, and expressed his willingness to cooperate with China to achieve greater success.

Since entering the Chinese market, Tesla has sold over 1.7 million vehicles in China alone, and the Shanghai factory is known as the largest of Tesla's factories in China.

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This article simply discusses Tesla's commercialization of full autonomous driving in China.

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