On Friday, China's industry ministry announced that autonomous driving-related over-the-air software upgrades will need regulatory approval. These new regulations aim to prevent automakers from using upgrades to hide defects or shirk liability.

Companies like Tesla and Xiaomi have employed OTA upgrades to address software issues, which, per China's rules, are deemed product recalls. However, it remains unclear if drivers will need to return vehicles for refunds.

The regulations state that manufacturers intending to use OTA upgrades for defect correction and recalls must halt the sale of flawed automobile products. If significant technical changes are necessary, automakers must secure a product change license before resuming production.

The rules prohibit automakers from promoting driving assistance systems as autonomous driving systems. Additionally, they mandate that any failures or accidents involving driving assistance systems be reported to the industry ministry and market regulator.