Tesla to Store Chinese User Data Locally | Following Apple

Data Handling by Tech Companies in China

The management of user information within China presents a complex challenge for international technology firms. Apple's decision to utilize Chinese state-owned cloud services for storing data belonging to its Chinese clientele has generated considerable debate internationally.

Investigations, such as one conducted by the New York Times, suggest this arrangement could potentially grant Beijing straightforward access to Apple’s user data originating from China.

However, Apple maintains that it has consistently prioritized the security of its customers and their data, asserting that no compromises have been made.

Tesla's Data Localization Strategy

Tesla, a prominent U.S. technology company with significant revenue streams from China, is implementing a comparable data strategy.

The electric vehicle manufacturer has established a data center within China to facilitate the “localization of data storage,” with further expansion of data facilities planned for the future, as announced on its Weibo microblogging platform.

All data produced by Tesla vehicles sold within mainland China will be retained domestically.

New Chinese Government Regulations

Tesla’s actions are a direct response to newly drafted regulations from the Chinese government.

These regulations aim to govern the collection and utilization of data by automotive manufacturers equipped with cameras and sensors.

A key stipulation within these requirements mandates that “personal or important data should be stored within the [Chinese] territory.”

Data Access and Control

The extent of data access granted to Chinese authorities regarding Tesla’s Chinese customer base remains unclear.

In Apple’s case, the company stated that it retains control over the encryption keys protecting the data of its Chinese users.

Challenges for Tesla in China

Tesla has recently experienced negative sentiment from Chinese media and the public.

This followed an incident at a Shanghai auto show where a customer publicly protested faulty vehicle components, garnering widespread support.

Furthermore, Tesla faces increasing competition from domestic rivals such as Nio and Xpeng, both of which are heavily investing in advanced designs and autonomous driving capabilities.

Seeking Government Favor

The American company is demonstrably seeking to improve its relationship with the Chinese government in its second-largest market.

Tesla recently participated in an industry symposium alongside companies like Baidu and Alibaba, as well as research institutions and think tanks.

The purpose of this meeting was to discuss the new vehicle policy proposed by China’s cybersecurity regulator.

Defining "Important Data"

“Important data” generated by vehicles, as defined by the Chinese internet regulator, encompasses a wide range of information.

This includes traffic patterns near military and government facilities, surveying and mapping data beyond publicly available information, the status of electric charging infrastructure, biometric data (face, voice, license plates), and any data considered to impact national security or public welfare.

User Privacy and Data Minimization

The regulations also emphasize the importance of user privacy.

Car service providers are urged to avoid tracking users by default and to transparently inform users about the types of data collected and the reasons for collection.

When data is collected, it should be anonymized and stored only for the “minimum period of time” necessary.