Re examination of Compliance Risks in Intelligent Connected Vehicle Surveying and Mapping

LABEL： Automotive, Manufacturing & Industrial , Dispute Resolution and Litigation , Corporate and M&A ,

introduction

On October 16, 2024, the official account of the Ministry of National Security released the article "Leakage of Hidden Surveying and Mapping Secrets" [1], which aroused widespread concern in the society, especially in the automotive industry.

Surveying and mapping geographic information is closely related to national security, and geographic information surveying and mapping is a key area of legal supervision in China. The raw data of surveying and mapping geographic information may involve high-precision measurement information of military important areas, key departments, etc., which poses a risk of being used overseas to mark key core parts of our country. According to Chinese laws and regulations, the entities conducting surveying and mapping activities must obtain specific surveying and mapping qualifications, and the processing of surveying and mapping data must also fulfill a series of strict confidentiality and security compliance obligations. Meanwhile, due to the high dependence of testing, operation, and service of intelligent connected vehicles on real-time high-precision coordinates and high-definition image data, which may involve the collection, storage, transmission, and processing of geographic information such as road infrastructure, spatial location, and specific areas, they are subject to strict supervision in the field of geographic information surveying and mapping.

In this context, this paper intends to sort out the relevant legal requirements of surveying and mapping in China, the identification of surveying and mapping behavior of intelligent connected vehicles and compliance risks, illegal consequences (including criminal liability), and put forward relevant compliance suggestions, with a view to helping relevant enterprises in the intelligent connected vehicle industry (including intelligent connected vehicle manufacturers, auto drive system developers, intelligent connected vehicle software and hardware manufacturers, etc.) to carry out relevant testing, research and development, operation, services and other activities in compliance, so as to avoid violations and even touching the national security red line.
1、 Overview of Legal Requirements for Surveying and Mapping in China
1. Overall requirements in the field of surveying and mapping

The overall regulations in the field of surveying and mapping in China include the following aspects:
(1) Basic definition of surveying and mapping activities

According to the Surveying and Mapping Law of the People's Republic of China (hereinafter referred to as the "Surveying and Mapping Law"), surveying and mapping refers to the activities of measuring, collecting, and expressing the shape, size, spatial position, and attributes of natural geographic elements or surface artificial facilities, as well as processing and providing the obtained data, information, and results.
(2) Access requirements for surveying and mapping activities

China implements an administrative licensing system for units engaged in surveying and mapping. Any entity engaged in surveying and mapping activities in China must obtain corresponding surveying and mapping qualifications or entrust units with surveying and mapping qualifications to carry out such activities.
2. Surveying regulations related to intelligent connected vehicles
(1) Identification criteria for intelligent connected vehicle surveying behavior

The "Notice of the Ministry of Natural Resources on Promoting the Development of Intelligent Connected Vehicles and Maintaining the Security of Surveying and Mapping Geographic Information" (Natural Resources Regulation [2022] No. 1) issued on August 25, 2022 (hereinafter referred to as the "Ministry of Natural Resources Document No. 1 of 2022") provides a clear definition of surveying and mapping activities for intelligent connected vehicles.

Prior to this, whether the research and testing activities related to intelligent connected vehicles belonged to surveying behavior mainly relied on the understanding of the definition of "surveying" in Article 2 of the Surveying and Mapping Law, normative documents from relevant departments, and individual consultations and communication with the natural resources regulatory authorities.

In addition, the "Notice of the Ministry of Natural Resources on Strengthening the Security Management of Surveying and Mapping Geographic Information Related to Intelligent Connected Vehicles" (hereinafter referred to as "Ministry of Natural Resources Document No. 139 of 2024") issued on July 26, 2024, further clarifies the identification and compliance requirements for surveying and mapping behaviors in the field of intelligent connected vehicles.
(2) Navigation electronic map surveying qualification

The Ministry of Natural Resources has revised the "Measures for the Administration of Surveying and Mapping Qualifications" and the "Classification and Grading Standards for Surveying and Mapping Qualifications", which came into effect on July 1, 2021. The qualification categories and grades have been reduced, and the surveying and mapping qualification grades have been reduced from four to two levels, A and B, with significant integration. The new regulations have added a Class B qualification for the production and surveying of navigation electronic maps closely related to intelligent connected vehicles. The approval of Class A surveying qualifications is still handled by the Ministry of Natural Resources, while the approval of Class B surveying qualifications is the responsibility of the provincial natural resources department.

The qualification for Class A navigation electronic map surveying has no geographical restrictions, while the qualification for Class B navigation electronic map is limited to engaging in navigation electronic map production within the autonomous driving area designated by relevant government departments. Obviously, the "gold content" of Class A navigation electronic map production and surveying qualifications is higher. Currently, there are about 19 map merchants holding Class A navigation electronic map production and surveying qualifications.
3. Surveying regulations related to state secrets
(1) Classification and Scope of State Secrets in Surveying and Mapping Geographic Information

The "Regulations on the Scope of State Secrets for Surveying and Mapping Geographic Information Management Work" and the "Catalogue of State Secrets for Surveying and Mapping Geographic Information Management Work" (hereinafter referred to as the "2020 Catalogue of State Secrets for Surveying and Mapping Geographic Information"), revised by the Ministry of Natural Resources and the State Secrets Administration and effective on July 1, 2020, classify surveying and mapping geographic information secrets into top secret, confidential, and secret levels.

Among them, "three-dimensional models, point clouds, oblique images, real images, navigation electronic maps, and other measured results with a plane accuracy better than (including) 10 meters or a relative measurement accuracy of ground object height better than (including) 5% outside the military restricted zone, and a continuous coverage area exceeding 25 square kilometers", "point names and coordinates involving key military and national security departments; point coordinates and their name attributes of important national economic facilities related to military and national security with an accuracy better than (including) ± 10 meters" are state secrets. Unless specific surveying and mapping results are known by the storage unit and users, they shall not be disclosed to the public or transmitted outside the country without approval.
(2) The use of confidential surveying and mapping results

The Notice on Strengthening the Management of Production, Testing, and Application of Autonomous Driving Maps issued by the National Bureau of Surveying and Mapping in 2016 specifies that map data used for autonomous driving technology testing and road testing should be managed according to classified surveying and mapping results, and effective measures should be taken to ensure data security. Without approval, map data shall not be provided or shared with foreign organizations, individuals, or foreign-invested enterprises.

The "Management Measures for Providing Confidential Surveying and Mapping Results to Foreign Countries" issued and effective by the Ministry of Natural Resources on July 26, 2024, clarifies that confidential surveying and mapping results refer to surveying and mapping results that are classified as state secrets according to the "2020 Catalogue of State Secrets of Surveying and Mapping Geographic Information". We implement a graded approval system for providing confidential surveying and mapping results to external parties.
(3) Confidentiality Handling of Navigation Electronic Maps

According to the "Specification for Content Representation of Public Maps" revised by the Ministry of Natural Resources and effective on February 6, 2023, as well as the "Basic Requirements for Security Processing Technology of Navigation Electronic Maps (GB 20263-2006)", navigation electronic maps containing national secret surveying and mapping results must undergo spatial location technology processing before being publicly sold, disseminated, displayed, and used.
4. Special restrictions on overseas organizations, individuals, and foreign-funded enterprises in the field of surveying and mapping

According to the Interim Measures for the Administration of Surveying and Mapping in China by Foreign Organizations or Individuals, foreign organizations or individuals engaged in surveying and mapping within the territory of China must establish joint ventures or cooperative enterprises with relevant Chinese departments or units in accordance with the law;   The method also stipulates that surveying and mapping activities conducted through joint ventures or cooperation shall not engage in navigation electronic map compilation, geodetic surveying, marine surveying, surveying aerial photography, administrative boundary surveying, and other surveying and mapping activities.

The "Special Management Measures for Foreign Investment Access (Negative List) (2024 Edition)" specifies that foreign investors are prohibited from investing in surveying activities such as navigation electronic map compilation, geodetic surveying, marine surveying, surveying aerial photography, ground mobile surveying, and administrative boundary surveying.
2、 Identification of Intelligent Connected Vehicle Surveying Behavior and Compliance Risks
1. Identification of surveying and mapping behavior

According to the "No.1 Document of the Ministry of Natural Resources in 2022", the installation or integration of satellite navigation positioning receiving modules, inertial measurement units, cameras, LiDAR and other sensors in intelligent connected vehicles for the collection, storage, transmission and processing of surveying and mapping geographic information data such as spatial coordinates, images, point clouds and their attribute information of vehicles and surrounding road facilities during operation, service and road testing belongs to the surveying and mapping activities stipulated in the "Surveying and Mapping Law".

The "Document No. 139 of the Ministry of Natural Resources in 2024" further clarifies that the collection, storage, transmission, and processing of geographic information data (including road topology data) such as spatial coordinates, real-time images (such as videos and images), point clouds, and their attribute information of vehicles and surrounding road facilities during the operation, service, and testing of intelligent connected vehicles belongs to the surveying and mapping activities stipulated in the "Surveying and Mapping Law".

The No.1 Document of the Ministry of Natural Resources in 2022 also clarifies that the manufacturing, integration, and sales of various types of vehicle sensors and intelligent connected vehicles do not belong to surveying and mapping activities.
2. Subject of surveying and mapping behavior

According to the "No.1 Document of the Ministry of Natural Resources in 2022", the main body of surveying and mapping activities is responsible for collecting, storing, transmitting, and processing spatial coordinates, images, point clouds, and their attribute information generated during the operation, service, and road testing of intelligent connected vehicles. The article also points out that from the current market operation situation, the data collection, storage, transmission, and processing are mostly carried out by car companies, service providers, and some intelligent driving software providers. However, intelligent connected vehicle drivers and passengers who only receive assisted driving and other services do not belong to the behavioral subjects related to surveying and mapping activities.
3. Management requirements for surveying and mapping activities

According to the document No. 139 of the Ministry of Natural Resources in 2024, the basic maps, advanced assisted driving maps, high-precision maps, and autonomous driving maps used in intelligent connected vehicles belong to navigation electronic maps. The collection, storage, transmission, processing, and map making of geographic information data returned by intelligent connected vehicles should be undertaken by units with surveying and mapping qualifications such as navigation electronic map making.

The article further emphasizes that the geographic information data collected by intelligent connected vehicles for navigation related activities and map production and updates should be directly transmitted to units with navigation electronic map production and surveying qualifications for management, and other units or individuals are not allowed to access it.
4. Management requirements for confidential and sensitive geographic information data

The "Document No. 139 of the Ministry of Natural Resources in 2024" also clearly stipulates that for the management of navigation electronic maps, real-life images, point clouds and other measured results that belong to state secrets, as well as geographic information data (including scene libraries) collected, stored, transmitted and processed by intelligent connected vehicles containing confidential and sensitive content, it is not allowed to provide confidential or sensitive geographic information without authorization. The confidentiality level of data processed using geographic information confidentiality processing technology that has not been recognized by the state shall not be lower than the confidentiality level before processing.
5. Cross border transmission of surveying and mapping data

According to the No.1 Document of the Ministry of Natural Resources in 2022, enterprises that are currently providing after-sales and operation services for intelligent connected vehicles and have plans to transmit surveying and mapping geographic information data such as spatial coordinates, images, point clouds, and their attribute information to foreign countries should strictly comply with relevant national laws and regulations, and fulfill the approval or map review procedures for external provision in accordance with the law. Prior to this, the overseas transmission of data should be stopped.

For the "approval or map review procedures for external provision" stipulated in this article, we understand that if the relevant data involves confidential surveying and mapping results, the "Management Measures for External Provision of Confidential Surveying and Mapping Results" should be followed. For non confidential surveying and mapping results, the map review procedures should be followed.

The Ministry of Natural Resources' Document No. 139 of 2024 explicitly requires that geographic information data must be stored within the country, and the storage devices, networks, and cloud services used must comply with relevant national security and confidentiality requirements. Applicants who apply to provide geographic information data overseas must strictly follow the approval or map review procedures for external provision, and implement relevant regulations such as data export security assessment.
6. Surveying and mapping data collection tools

The "No.1 Document of the Ministry of Natural Resources in 2022" does not fully list the types of sensors used in intelligent connected vehicle surveying activities. The geographic information data collected by these sensors includes spatial coordinates, images, point clouds, and their attribute information. The table below summarizes and supplements the commonly used sensor types and their collected information in current autonomous driving technology:

           

The No.1 Document of the Ministry of Natural Resources in 2022 does not explicitly include vehicle mounted ultrasonic radar and millimeter wave radar in the scope of sensors involved in surveying activities, which may be related to the types of data collected by these two sensors. However, this does not mean that the use of vehicle mounted ultrasonic radar or millimeter wave radar in the operation, service, and road testing of intelligent connected vehicles will not constitute surveying behavior.
7. Obtain surveying and mapping qualifications or commission a qualified surveying and mapping supplier

According to the "No.1 Document of the Ministry of Natural Resources in 2022", car companies, service providers, and intelligent driving software providers who need to engage in data collection, storage, transmission, and processing, and are domestic enterprises, shall obtain corresponding surveying and mapping qualifications in accordance with the law, or entrust units with corresponding surveying and mapping qualifications to carry out corresponding surveying and mapping activities; For foreign-invested enterprises, they should entrust units with corresponding surveying and mapping qualifications to carry out corresponding surveying and mapping activities. The entrusted surveying and mapping qualification unit shall be responsible for collecting, storing, transmitting, and processing relevant spatial coordinates, images, point clouds, and their attribute information, as well as providing geographic information services and support.

According to the "Special Management Measures for Foreign Investment Access (Negative List) (2024 Edition)", areas such as ground mobile surveying and navigation electronic map compilation are prohibited for foreign investment. Domestic enterprises that obtain surveying and mapping qualifications in these professional categories should strictly comply with relevant national regulations.

In practice, many enterprises have proposed that if they want to apply for surveying and mapping qualifications or entrust map merchants with corresponding surveying and mapping qualifications, what surveying and mapping qualifications should they apply for or entrust map merchants with what surveying and mapping qualifications? There are no detailed regulations on this in the relevant documents. According to current understanding, the massive spatiotemporal data obtained by intelligent connected vehicles should be aggregated, fused, and processed to form a series of navigation electronic map products with a certain level of confidentiality. Enterprises with navigation electronic production and surveying qualifications should undertake the relevant data decryption and desensitization work, and choose Class A or Class B according to the needs of the required data range.
3、 Illegal consequences
1. Administrative responsibility

According to the Surveying and Mapping Law, if overseas organizations or individuals engage in surveying and mapping activities in China without approval, they shall be ordered to stop the illegal activities, confiscate their illegal gains, surveying and mapping results and tools, and be fined not less than 100000 yuan but not more than 500000 yuan; Those with serious circumstances may face fines ranging from 500000 yuan to 1 million yuan, as well as administrative penalties such as a time limit for exit or deportation.

Those who violate the Surveying and Mapping Law by obtaining, holding, providing, or utilizing geographic information that is classified as state secrets will face penalties such as warning, cessation of illegal activities, confiscation of illegal gains, and fines of up to twice the amount of illegal gains; The directly responsible supervisors and other directly responsible personnel will also face disciplinary action; Those who cause losses shall bear the liability for compensation.

According to the Surveying and Mapping Law, those who disclose state secrets will face administrative penalties such as suspension of business for rectification, reduction of surveying and mapping qualification level, or revocation of surveying and mapping qualification certificate.

According to the Law on Guarding State Secrets (hereinafter referred to as the "Confidentiality Law"), if an organization or unit violates the provisions of this Law and commits a major case of leaking state secrets, the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the law. Enterprises and institutions that have obtained confidentiality qualifications and violate national confidentiality regulations shall be ordered by the confidentiality administrative department to rectify within a specified period of time, given a warning or criticized in a public notice; If there are illegal gains, they shall be confiscated; If the circumstances are serious, the confidential business shall be suspended and the qualification level shall be lowered; If the circumstances are particularly serious, the confidentiality qualification shall be revoked.
2. Criminal responsibility

As mentioned earlier, surveying geographic information or confidential surveying results are closely related to national security and secrets. When violating regulations such as the Surveying and Mapping Law and the Confidentiality Law, and the circumstances are serious, criminal responsibility will be faced.

Illegally providing state secrets to foreign countries may violate the crime of "stealing, spying, buying, and illegally providing state secrets and intelligence for foreign countries". Based on the level, quantity, and degree of damage caused by illegally provided state secrets, the following criminal responsibilities may be borne:

           

Overseas personnel who obtain state secrets through theft, espionage, or bribery may constitute the crime of "illegal acquisition of state secrets" and may be sentenced to imprisonment for up to three years, detention, surveillance, or deprivation of political rights; Those with serious circumstances will face imprisonment for not less than three years but not more than seven years.

In addition, the revised Anti Espionage Law of the People's Republic of China ("the Anti Espionage Law") promulgated on April 26, 2023 expanded the definition of espionage behavior, including "other documents, data, materials, and items related to national security and interests" alongside "state secrets" and "intelligence", and included them in the scope of protection of the Anti Espionage Law. Under the provisions of criminal law, such behavior may also violate the crime of espionage and face imprisonment for more than ten years or life imprisonment, and may also result in confiscation of property; Those with minor circumstances will be sentenced to imprisonment for not less than three years but not more than ten years, and may also be held criminally responsible for confiscation of property. In addition, if the above-mentioned acts pose a particularly serious threat to the country and the people, and the circumstances are particularly heinous, they may face the death penalty and criminal responsibility for confiscation of property.

It should be noted that although such crimes that endanger national security only punish natural persons and do not take the form of corporate crimes, it does not mean that when companies, enterprises, or other organizations arrange for employees to engage in such behavior, the company's management and employees do not constitute criminal offenses. The Interpretation of the Standing Committee of the National People's Congress on Article 30 of the Criminal Law of the People's Republic of China (issued and implemented on April 24, 2014) clearly stipulates that "if companies, enterprises, institutions, organs, organizations and other units commit acts harmful to society as stipulated in the Criminal Law, and if the specific provisions of the Criminal Law and other laws do not provide for investigating the criminal responsibility of the unit, the person who organizes, plans, and implements such acts harmful to society shall be investigated for criminal responsibility according to law".
4、 Compliance recommendations
For map vendors with surveying qualifications such as navigation electronic maps, etc
(1) Strengthen internal compliance assessment

It is recommended to conduct an internal compliance review, identify potential compliance risks, especially those that may involve confidential surveying and mapping results and national security, and promptly rectify them. Further strengthen the construction and implementation of compliance systems, take necessary measures to enhance the management of actual measurement results such as navigation electronic maps, real-life images, point clouds, etc. that belong to state secrets, as well as geographic information data (including scene libraries) collected, stored, transmitted, and processed by intelligent connected vehicles containing confidential and sensitive content, and strictly control the provision of confidential or sensitive geographic information to the outside world.
(2) Strictly comply with the relevant regulations on data export

Strictly abide by the requirements for storing geographic information data within the country, and use storage devices, networks, and cloud services that comply with relevant national security and confidentiality requirements. Before providing geographic information data overseas, strict approval or map review procedures must be followed, and relevant regulations such as data export security assessment must be implemented.
(3) Strictly implement the security measures and management system requirements for surveying and mapping geographic information

Strictly implement the nationality requirements for personnel engaged in confidential surveying and mapping business, establish and improve the security and confidentiality management system for surveying and mapping geographic information, register and store the acquisition, possession, provision, and utilization of geographic information that belongs to state secrets for a long time, and implement traceable management. Establish and improve the security and confidentiality management system for confidential surveying and mapping field work, and implement the responsibilities of regulatory personnel and confidentiality.
2. For enterprises related to intelligent connected vehicles
(1) Conduct internal compliance assessment

It is recommended to conduct an internal compliance review and conduct a comprehensive compliance assessment of the current research and development, testing, operation, and service activities of intelligent connected vehicles in the enterprise, to evaluate whether the current business scenarios involve relevant surveying and mapping activities. Especially for foreign-funded enterprises, they should increase the verification of their compliance in the current research and operation of intelligent connected vehicles, including whether they involve geographic information mapping activities and whether cross-border data transmission meets relevant requirements.
(2) Legally conducted

If it is found through internal evaluation that relevant surveying and mapping activities have been carried out, corrective measures should be taken immediately, and qualified surveyors should be commissioned to carry out relevant surveying and mapping activities as soon as possible. If the relevant car companies, component suppliers, or developers of intelligent/autonomous driving software are domestic enterprises, they can consider applying on their own or entrusting a qualified surveyor based on practical considerations. For foreign-funded enterprises, considering the restrictions on foreign investment in the field of surveying and mapping, even if they have already commissioned a surveyor to carry out relevant surveying and mapping activities, it is recommended to further verify whether there are compliance defects or loopholes in the specific implementation process, including whether the commissioned surveyor holds appropriate surveying and mapping qualifications, in order to further reduce compliance risks.
(3) Improve internal compliance system construction and strengthen national security risk prevention and control

It is suggested to further improve the construction of enterprise compliance systems, incorporate surveying and mapping related compliance requirements into the overall compliance system of enterprises, carry out data classification and grading accordingly, strengthen the compliance of enterprise data throughout its lifecycle, improve emergency response mechanisms, and timely identify and eliminate risks of violations. At the same time, it is recommended that enterprises strengthen internal training related to geographic information surveying and mapping, increase publicity and implementation of national security risk prevention and control systems within the enterprise.
epilogue

Maintaining the security of surveying and mapping geographic information is the cornerstone of the healthy development of intelligent connected vehicle enterprises. National security is no small matter. Intelligent connected vehicle manufacturers, component suppliers, intelligent/autonomous driving software developers, and other relevant entities in the automotive industry, as well as map vendors with relevant surveying qualifications, should attach great importance to the compliance issues of geographic information surveying in the research and development, testing, operation, and service processes of intelligent connected vehicles. They should strictly comply with relevant compliance requirements, strengthen the construction and implementation of internal compliance systems, legally carry out related research and development and operation activities, enhance the awareness of national security risk prevention within enterprises, and avoid touching the national security red line.