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Tesla Pauses Full Self-Driving Trial in China Pending Regulatory Approval

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Tesla announced on Monday that it would halt its limited-time free trial of the Full Self-Driving (FSD) feature in China, pending the completion of regulatory approval. The pause follows complaints regarding the trial, which was initially scheduled to run from March 17 to April 16.

Tesla’s customer support addressed the issue on the social media platform Weibo, where they stated that all parties involved are working to advance the relevant approval processes. They assured customers that the feature would be released once regulatory conditions are met and urged patience.

FSD is a suite of driving-assistance technologies powered by generative artificial intelligence, designed to handle complex traffic conditions. Tesla is targeting a full rollout of FSD later this year and is collaborating with Chinese tech giant Baidu to enhance the system’s performance.

While Tesla has successfully offered such trials in the U.S. without requiring up-to-date navigation maps—relying instead on local AI training from its 2 million EVs—the company faces challenges in China due to strict data laws that prevent the system from being trained using local data. Additionally, China’s industry ministry implemented new rules in February mandating that autonomous driving-related over-the-air software updates be approved by regulators before they can be deployed.

Malaysia to Tighten Semiconductor Regulations Amid U.S. Pressure

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Malaysia plans to impose stricter regulations on the movement of semiconductors, particularly those from Nvidia, as part of efforts to curb the flow of advanced chips to China under U.S. pressure. The United States has expressed concerns over the potential diversion of these critical chips to China, where they could be used in the development of artificial intelligence (AI) technologies.

Trade Minister Zafrul Aziz revealed that the U.S. government has asked Malaysia to monitor shipments of high-end Nvidia chips and ensure that they are not diverted to unauthorized destinations, particularly China. The U.S. is concerned that servers containing these chips may end up in Chinese data centers instead of the intended locations, and is pushing Malaysia to track every shipment of Nvidia products entering the country.

Malaysia’s investigation into the situation also ties into a broader inquiry regarding a fraudulent transaction case in Singapore, involving the illicit shipment of U.S. servers to Malaysia. These servers may have contained advanced chips covered by U.S. export controls. The case, which involves Singapore-based firms accused of supplying these servers fraudulently, is valued at $390 million. There are concerns that the shipments may have been intended for Chinese AI company DeepSeek, which gained attention for its AI model performance earlier this year.

The U.S. government is also probing whether DeepSeek has been using banned U.S. chips, as part of a wider investigation into the potential violations of export controls on semiconductor technologies.

Meituan to Invest “Billions” in AI Chips, Joining China’s AI Spending Surge

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Meituan, China’s leading food delivery company, has announced plans to invest “billions” in chips for training artificial intelligence (AI) models, according to CEO Wang Xing during the company’s post-earnings call on Friday. This move aligns with the growing trend of significant AI investments by China’s tech giants.

The announcement comes as the company seeks to bolster its capabilities in AI, a sector rapidly gaining traction across industries. Meituan’s investment is part of a larger wave of funding within the tech sector, with companies like Alibaba also ramping up their AI-related expenditures. In February, Alibaba revealed plans to allocate at least 380 billion yuan toward cloud computing and AI infrastructure over the next three years.

These investments underscore the increasing competition in China’s tech industry as firms race to develop the next generation of AI technologies. Meituan’s focus on AI chip development signals its commitment to maintaining its leadership in food delivery and expanding into other AI-driven sectors.