China's state security ministry said that a foreign company had been found to have illegally conducted geographic mapping activities in the country under the guise of autonomous driving research and outsourcing to a licensed Chinese mapping firm.
The ministry did not disclose the names of either company in a statement on its WeChat account on Wednesday.
The foreign company, ineligible for geographic surveying and mapping activities in China, "purchased a number of cars and equipped them with high-precision radar, GPS, optical lenses and other gear," read the statement.
In addition to directly instructing the Chinese company to conduct surveying and mapping in many Chinese provinces, the foreign company appointed foreign technicians to give "practical guidance" to mapping staffers with the Chinese firm, enabling the latter to transfer its acquired data overseas, the ministry alleged.
Most of the data the foreign company has collected have been determined to be state secrets, according to the ministry, which said state security organs, together with relevant departments, had carried out joint law enforcement activities.
The affected companies and relevant responsible personnel have been held legally accountable, the state security ministry said, without elaborating.
China has strictly regulated mapping activities and data, which are key to developing autonomous driving, due to national security concerns. No foreign firm is qualified for mapping in China and data collected by vehicles made by foreign automakers such as Tesla in China has to be stored locally.
The U.S. Commerce Department has also proposed prohibiting Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns.
Also on Wednesday, a Chinese cybersecurity industry group recommended that Intel products sold in China should be subject to a security review, alleging the U.S. chipmaker has "constantly harmed" the country's national security and interests.