Biplab Das 
Germany and China have recently signed a joint declaration aimed at fostering cooperation in the realm of autonomous and connected driving. The agreement seeks to address the transfer of data from China to Germany, a matter of contention for foreign businesses operating in China.
Shared standards for data management
Under the declaration, both nations will collaborate to establish shared standards and regulations governing the management of data generated through the development of autonomous driving technologies. This move is anticipated to streamline resources in development and production, according to Germany’s auto association VDA.
Security concerns and regulatory landscape
The statement comes at a time when the EU and the U.S. are increasingly concerned about the potential security risks associated with Chinese technology entering their markets and collecting data locally. In February, Washington initiated a probe to examine possible national security risks posed by Chinese vehicle imports.
Challenges in data transfer
European business leaders, including Volkswagen’s China chief, have voiced frustration over China’s restrictions on data transfer from China to Europe. These restrictions are considerably more stringent than European regulations governing data transfer from Europe to China.
China’s regulatory framework
China has tightened its oversight over data management within its borders, requiring most industries to seek permission before transferring data abroad. Last year, the country implemented stricter data regulations for the auto industry, proposing to prohibit smart vehicles from directly transferring data abroad, urging them to utilise domestic cloud services instead.
Evolving regulatory stance
Despite initial stringent measures, Chinese regulators have signalled a willingness to reassess their stance following complaints from businesses regarding the lack of clarity and the disruptive nature of the laws. This indicates a potential softening of China’s regulatory approach towards data transfer.
Advocating for improvement
Germany’s statement emphasised the need for ongoing discussions on the topic, highlighting the absence of consensus and advocating for tangible improvements benefiting German and EU companies in this domain. The declaration provides a platform for further dialogue and negotiation.
Data collection in autonomous driving
Self-driving cars are equipped with advanced sensors such as lidars and sensors that collect vast amounts of data on passenger and driver behaviour, as well as the vehicle’s surroundings. Moreover, cars increasingly gather data on drivers through links to their mobile phones and other connected devices.
The joint declaration between Germany and China signifies a significant step towards addressing the complexities surrounding data transfer in autonomous driving technologies. By establishing shared standards and regulations, both nations aim to facilitate smoother collaboration while navigating the challenges posed by divergent regulatory landscapes.
