China’s Ministry of State Security (MSS) has accused an overseas company and a local firm of illegally collecting sensitive geographic information, under the guise of researching smart driving technology, according to a statement released on Wednesday. However, the MSS has not named the companies involved, fueling widespread speculation and concerns in the technology and automotive sectors.
The accusations come at a time when tensions between China and several Western countries, including the United States and Canada, are escalating over the use of advanced sensors and mapping technology in vehicles, which have become a matter of national security for multiple governments.
China’s laws on geographic data collection are some of the most stringent in the world. Only a limited number of companies—fewer than 30, according to official sources—are permitted to collect geographic information for navigation and mapping purposes. This tight control reflects Beijing’s broader concerns about potential espionage and the leakage of state secrets through advanced technologies like GPS, mapping software, and sensor-laden devices, including smart cars and drones.
Mapping and navigation data is considered particularly sensitive in China, as it can reveal critical infrastructure locations, military installations, and other information that could be used for intelligence purposes. Geographic data collection without proper authorization is strictly prohibited and can lead to significant legal consequences.
According to the MSS’s statement, the foreign firm in question was not authorized to collect such data, prompting it to bypass China’s regulations. To avoid detection, the foreign company reportedly contracted a qualified local map-making firm to do the work on its behalf. The statement claims that the local firm purchased several vehicles equipped with sophisticated sensors to gather geographic information. These vehicles were used to conduct extensive data collection activities, but rather than using the data for legal purposes, the local firm allegedly transferred it outside of China.
The MSS’s investigation revealed that much of the geographic data collected by the overseas firm contained classified information, including state secrets. Furthermore, the local company involved allegedly failed to comply with stringent industry regulations, which contributed to the eventual leakage of sensitive information.
“The firms and individuals responsible for this breach have been held accountable in accordance with the law,” the MSS stated, without providing specific details about the penalties or legal actions taken. This vague conclusion has left many industry insiders and observers questioning the full extent of the incident and whether more details will emerge in the coming weeks.
The MSS’s statement highlights the growing importance of cybersecurity and information protection in China’s rapidly developing automotive and technology sectors. As smart driving technology and autonomous vehicles become more prevalent, the risk of sensitive data being leaked or misused increases, raising concerns about the intersection of innovation and national security.
This incident unfolds against the backdrop of intensifying disputes between China and several Western countries, notably the United States and Canada, over the use of advanced technologies in automobiles. Both nations have expressed concern that Chinese electric vehicles (EVs) equipped with sophisticated sensors and communication technology could be used for espionage or pose a national security threat.
In response, the U.S. Commerce Department recently proposed a ban on the sale or import of smart cars that use Chinese or Russian technology. The move is part of a broader strategy aimed at reducing reliance on foreign technologies that could be weaponized or leveraged for espionage purposes. Canada is also considering similar measures, as it weighs the risks associated with Chinese technology in its own automotive market.
Beijing, however, has criticized these proposed bans, calling them unfair and a violation of international trade principles. Chinese officials have argued that such measures are protectionist in nature and do not align with the principles of free market competition.
“These actions violate the principles of a market economy and fair competition,” a spokesperson from China’s Ministry of Commerce said in response to the U.S. and Canadian proposals. China has warned that such moves could disrupt global supply chains and harm the development of emerging technologies, which are critical to the future of transportation and clean energy.
In the absence of specific details from the Chinese government, social media platforms in China have become a hotbed of speculation over which companies may have been involved in the illegal data collection. Some users have pointed fingers at foreign firms with a strong presence in China’s automotive and technology markets, while others have speculated that domestic companies might have played a larger role than initially suggested.
Among the companies that have faced scrutiny are global electric vehicle giant Tesla Inc. and autonomous driving technology firm Mobileye Global Inc. Both companies, however, have publicly denied any involvement in the incident.
Tesla’s Global Vice President Grace Tao took to Weibo, China’s popular social media platform, on Wednesday to clarify the company’s position. Tao emphasized that Tesla adheres strictly to China’s legal framework for smart driving technology. She also shared a screenshot of the MSS’s official statement to highlight the importance of compliance in the development of sustainable automotive technologies.
“Tesla believes legal smart driving technology is the way to sustainable development,” Tao wrote, reaffirming Tesla’s commitment to regulatory compliance.
Mobileye, which supplies autonomous driving technology to several major automakers, also issued a statement on Weibo. The company stressed that it operates in full compliance with Chinese regulations and only under the supervision of licensed local entities.
“We strictly follow legal requirements and always ensure that our technology complies with Chinese laws,” Mobileye stated.
Chinese companies have also moved quickly to distance themselves from the allegations. Zeekr, the premium electric vehicle brand owned by Zhejiang Geely Holding Group Co., which utilizes Mobileye’s autonomous driving technology, issued a public denial. Senior Geely executive Victor Yang stated on Weibo that neither Zeekr nor its partners were involved in the illegal data collection activities. He urged the public to stop spreading unfounded rumors that could damage the reputation of companies operating within the bounds of the law.
NavInfo Co., one of China’s leading navigation and mapping technology providers, also denied any involvement. The company reiterated its longstanding commitment to operating legally in the highly regulated geographic data sector and warned that it would take necessary actions to protect its reputation from baseless accusations.
While major companies have scrambled to defend their reputations, the lack of transparency surrounding the MSS’s accusations has sparked frustration among industry observers and commentators. Han Lu, a well-known car reviewer in China, took to social media to express his concerns about the negative impact of such speculation on law-abiding companies.
“My social media feed is full of guesses about which companies might be involved,” Han Lu wrote on Weibo. “With controversial news like this, the relevant departments should disclose the identities of those involved. Otherwise, this speculation can lead to harassment for companies that are operating legally.”
Han’s comments reflect a growing sentiment within China’s business community that the government should be more forthcoming about incidents involving potential security breaches. By withholding key details, some argue, the government risks harming the reputations of companies that are committed to compliance and stoking fears among investors and consumers.
The recent controversy surrounding illegal geographic data collection underscores the challenges China faces as it seeks to balance technological innovation with national security concerns. As the country continues its push to become a global leader in electric vehicles, smart driving technology, and artificial intelligence, it must also contend with the risks these technologies pose to its own security.
The case also highlights the growing role that mapping, navigation, and sensor technologies play in modern industries. From autonomous vehicles to smart cities, the ability to collect, analyze, and utilize geographic data is critical to the future of transportation, urban planning, and national defense. But as this case shows, such capabilities come with significant risks, particularly in a world where data can be easily transferred across borders.
As governments around the world grapple with these challenges, the question remains: How can technological progress be reconciled with the need to protect national security? For China, the answer may lie in even tighter regulation and enforcement, but such measures could also stifle the very innovation the country seeks to foster.
The MSS’s accusations have sent a clear signal to both domestic and foreign companies operating in China: the collection of geographic data is a matter of national security, and any violation of the rules will be met with severe consequences. But until the government provides more transparency, speculation and uncertainty are likely to continue to swirl around this incident, potentially damaging the reputations of law-abiding firms and sowing distrust within the industry.
