China has experienced remarkable growth in smart-driving vehicles in recent years, with digital maps playing a critical role in enabling this technological advancement. However, digital mapping activities in China are strictly regulated. Activities ranging from map data collection and digital map compilation to data storage or processing all could be classified as “surveying and mapping activities” and therefore require specialized licenses. Engagement in these activities without a proper license can, in severe cases, constitute violations of anti-espionage laws and result in criminal penalties. Therefore, it’s crucial for stakeholders in the automotive industry, particularly foreign-invested enterprises, to thoroughly understand China’s regulatory landscape concerning digital mapping to effectively mitigate associated risks.

1. Broad Scope of Surveying and Mapping Activities 

The definition of “surveying and mapping activities” under the Surveying and Mapping Law of the People’s Republic of China (“Surveying and Mapping Law”) is broad and ambiguous. According to the Surveying and Mapping Law, “surveying and mapping” refers to “the activities of measuring, collecting, and describing the shape, size, spatial position, and attributes of natural geographic features or man-made surface facilities, as well as processing and providing the obtained data, information, and results”. 

The Ministry of Natural Resources (“MNR”) provides further guidance and clarification for the automobile industry. According to the MNR,[1] “the activities of collecting, storing, transmitting, and processing geographic information data—such as spatial coordinates of vehicles and surrounding road infrastructure, real-world imagery (including video and other environmental perception data), point clouds and their attribute information (including road topology data)—during the operation, service, and testing of intelligent connected vehicles constitute surveying and mapping activities”. In other words, even merely storing or transmitting the aforesaid “geographic information data” (hereinafter referred to as “map data” for ease of discussion) without actively collecting or processing map data may trigger the regulatory requirements for surveying and mapping activities.

2. Regulatory Requirements on Map-Related Business

When companies develop digital maps for their smart-driving solutions, they are advised to consider the following regulatory requirements.

a. Collection of Map Data and Compilation of Digital Maps

In China, surveying and mapping businesses are classified into 10 categories[2] under the Administration Measures on Surveying and Mapping Qualifications. Each category is subject to specific surveying and mapping licensing requirements.

The collection of map data and the compilation of digital maps for navigation purposes, such as base maps, advanced driver-assistance system (ADAS) maps, high-definition (HD) maps, and autonomous driving maps, fall into the category of Compilation of Navigation Digital Maps (“CNDM”) and require a CNDM license.

According to the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2024) (“Negative List”), foreign investors are forbidden from investing in CNDM business. Hence, a foreign-invested enterprise (“FIE”) is unable to obtain a CNDM license, regardless of whether it is a joint venture (“JV”) or a wholly foreign-owned enterprise (“WFOE”).

b. Publication of Digital Maps

(1) Map Review before Publication

The Map Administration Regulations mandate all maps in China must be reviewed and approved by the government. Each map that passes the government’s review will be assigned a map approval number.

(2) Qualification for Publication

In accordance with the Map Administration Regulations, only qualified publishers in China are eligible to apply for map review. Additionally, the Negative List forbids foreign investors from investing in the map publication business.

c. Provision of Internet Map Service

(1) License for Internet Map Service (“IMS”)

If a digital map is provided via the internet, the map service provider may be required to obtain the IMS license, which is one of the 10 categories of surveying and mapping business under Chinese law.

IMS is further classified into three sub-categories: (i) geographic positioning, (ii) uploading and labeling of geographic information, and (iii) map database development. It is noteworthy that a company holding only an IMS license is not allowed to collect map data and compile maps on its own for its IMS business. Instead, it must use digital maps that have been approved by the government (i.e., digital maps with proper map approval numbers), which typically are compiled by companies holding CNDM licenses.

While foreign investors are forbidden from investing in the CNDM business, they are allowed to obtain IMS licenses and independently run IMS business in China. However, this potential is effectively neutralized in practice by restrictions on Internet Content Provider (“ICP”) licenses, as explained below.  

(2) License for ICP

Although IMS is completely open to foreign investors, it remains quite challenging for foreign investors to engage in the IMS business in China. As IMS is provided online, it falls under the category of internet content provision services and thus requires an ICP license. With the exception of certain designated areas with trial open-up policies, foreign investors’ shares in a company engaging in the ICP business is subject to limitations, capping at 50%. As a result, in practice, to run the IMS business in China, foreign investors need to form a JV with a Chinese company. 

d. Storage and Outbound Transfer of Map Data

Map data must be stored in China. The outbound transfer of map data is subject to MNR’s approval. In addition, it is highly probable that map data falls into the scope of important data, and consequently outbound transfer of map data is also subject to the security assessment administered by the Cyberspace Administration of China.

3. National Security and Anti-espionage Risks Arising from Collaboration with Surveying and Mapping Companies

Smart driving solutions require map data for algorithm training and improvements. As mentioned before, processing map data may constitute surveying and mapping activities. In practice, smart-driving companies typically need to cooperate with companies holding CNDM licenses for their research and development efforts. Foreign companies should exercise caution when cooperating with Chinese surveying and mapping service providers, as such cooperation may raise national security concerns among Chinese competent authorities and, consequently, expose foreign companies to anti-espionage risks.

a. No Access to State Secrets for Foreign Entities

Surveying and mapping results may contain state secrets, which are detailed in the Catalogue of State Secrets for the Administration of Surveying and Mapping Geographic Information. In accordance with the Regulations on the Administration of Surveying and Mapping Results and the Measures for the Administration of Providing Confidential Surveying and Mapping Results to Foreign Parties, access to any surveying and mapping results that contain state secrets by foreign entities is prohibited without approval from the MNR or its provincial divisions. Such restrictions not only apply to foreign companies but also extend to FIEs, including Sino-foreign JVs.

b. Enforcement Highlights

In October 2024, the Ministry of State Security (“MSS”) published a case on its WeChat public account highlighting national security and anti-espionage risks related to surveying and mapping activities arising from collaboration with foreign companies. 

According to MSS’s article, the foreign company A, collaborated with B, a Chinese surveying and mapping company, under the guise of autonomous driving research to illegally collect map data within China. This collaboration was intended to circumvent regulations prohibiting foreign entities from directly conducting surveying and mapping in China. The data collected was later identified as containing state secrets, posing threats to national security. B, despite having the necessary surveying and mapping qualifications, failed to adhere to data security regulations, allowing sensitive information to be controlled and transferred by the foreign entity. As a result, Chinese national security agencies and relevant departments jointly investigated the matter, and both the companies and responsible individuals implicated in the case faced legal consequences for their actions.

Navigating the regulatory landscape of China’s digital mapping sector presents significant complexities and stringent requirements, especially for foreign investors seeking opportunities within the booming smart-driving industry. Nevertheless, understanding and strategically approaching these legal frameworks can unlock substantial market potential. Foreign enterprises, by cultivating well-structured partnerships with licensed Chinese surveying and mapping companies and proactively addressing compliance obligations, can not only mitigate risks but also confidently capitalize on China’s technological advancements in autonomous driving and digital mapping. 

[Note] 

[1]Notice on Strengthening the Security Management of Surveying and Mapping Geographic Information Related to Intelligent Connected Vehicles.

[2]Geodesy, aerial photography for surveying and mapping, photogrammetry and remote sensing, GIS engineering, engineering surveying, boundary and real estate mapping, ocean surveying and mapping, map preparation, compilation of navigation digital maps, internet map service.