(Bloomberg) -- China’s Ministry of State Security accused an overseas firm and a local company of illegally collecting geographic information under the guise of doing research for smart driving technology, but didn’t identify the companies.
Map making and other related activities in China are strictly controlled and fewer than 30 firms are qualified to collect geographic data for use in navigation aids.
Because the foreign entity wasn’t permitted to collect such information, Beijing said it contracted a local qualified map maker and purchased several vehicles equipped with sensors to reduce the risk of being discovered. The local company was also directed to transfer the data collected out of China, according to the Ministry of State Security’s statement issued Wednesday.
After an investigation, it was found that much of the data collected by the overseas company contained state secrets, and furthermore the Chinese company failed to comply with industry requirements and that led to the data being leaked. The firms and people involved have been held accountable according to the law, the statement said.
The accusations come as China and countries including the US and Canada are involved in disputes over restricting sensor-laden Chinese electric vehicles. The US Commerce Department proposed a ban on the sale or import of smart cars that use Chinese or Russian technology due to national security concerns, while Canada is considering a similar move. Beijing has said the ban “violates the principles of market economy and fair competition”.
Because Beijing didn’t name the companies, Chinese social media was rife with speculation as to which companies might have been involved. Elon Musk’s Tesla Inc., autonomous driving firm Mobileye Global Inc. and others have since come out to say it wasn’t them and note they comply fully with China’s regulations.
Tesla’s Global Vice President Grace Tao wrote in a post on Wednesday on social media platform Weibo that Tesla believes legal smart driving technology is the way to sustainable development, along with a screenshot of the government’s statement. Mobileye also posted on Weibo and said it operates under the supervision of licensed entities in full accordance with legal requirements.
Zeekr, the premium EV brand of Zhejiang Geely Holding Group Co. that uses Mobileye technology, also denied being involved. Senior Geely executive Victor Yang said on Weibo the news had nothing to do with Zeekr nor its partners and called for the rumors to stop. Navigation company NavInfo Co. meanwhile said it’s also always operated legally and would take necessary action to protect its reputation.
Han Lu, a veteran Chinese car reviewer, said his social media feed was full of guesses as to who the companies might be. With controversial news like this, the relevant department should disclose the identifies of those involved otherwise the speculation can create harrassment for companies that are operating legally, he said on Weibo on Thursday.
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