ପ୍ରକାଶିତ · Odia (Oriya)

China Releases National Standard for Electronic Vehicle Licenses: What Foreign Founders Need to Know

China has approved a new national standard for electronic vehicle licenses, introducing an authorization mechanism that allows vehicle owners to grant temporary use to others. Effective April 1, 2027, the standard impacts how foreign founders manage company vehicles and digital documentation in China.

China Releases National Standard for Electronic Vehicle Licenses

Foreign founders operating companies in China should take note of a new national standard for electronic vehicle licenses. The Standardization Administration of China (SAC), under the State Administration for Market Regulation (SAMR), recently approved the "Traffic Management Electronic Certificate – Motor Vehicle Driving License" standard, which will take effect on April 1, 2027. This standard introduces an authorization mechanism that allows vehicle owners to permit others to use their electronic vehicle license for specific business scenarios, with全程留痕可查 (full traceability) to prevent misuse.

For foreign entrepreneurs, this development is part of China's broader push to digitalize administrative processes and improve ease of doing business. Understanding these changes can help streamline vehicle management and compliance for your China-based operations.

Background: Electronic Licenses in China

China has been progressively rolling out electronic versions of driving licenses and vehicle licenses. Electronic driving licenses were promoted nationwide by the end of 2021, accessible via the "Traffic Management 12123" mobile app. Electronic vehicle licenses followed, becoming fully available across the country in November 2024. To standardize the generation, processing, and sharing of these electronic certificates, the Ministry of Public Security has developed a series of national standards.

The first in this series, the "Traffic Management Electronic Certificate – Motor Vehicle Driving License" standard, already took effect on July 1, 2026. The newly approved standard for vehicle licenses complements it. Together, they establish a unified framework for electronic traffic management certificates.

Key Features of the New Standards

The two standards cover several important aspects that affect how businesses and individuals use electronic licenses:

1. Unified Certificate Information Requirements

The driving license standard specifies the information contained in an electronic driving license, including driver identity details (name, license number) and qualification information ( permitted vehicle types, accumulated points, license status). The vehicle license standard specifies the information for an electronic vehicle license, including registration details (vehicle type, plate number, vehicle identification number) and dynamic information such as vehicle status. This standardization ensures consistency and facilitates verification across different platforms and regions.

2. Innovative Authorization Mechanism

A notable feature of the vehicle license standard is the introduction of authorization information, including the authorized user and the purpose of use. Vehicle owners can authorize others to use their electronic vehicle license for specific business scenarios. The entire process is traceable, which helps prevent the misuse or impersonation of certificates. For foreign founders, this means that company vehicles can be legally delegated to employees or agents for specific tasks without the need for physical documents, while maintaining a clear audit trail.

3. Enhanced Security Technical Protection

Both standards require that data files be digitally signed using the domestic SM2 cryptographic algorithm. This provides anti-forgery and anti-tampering capabilities. Sensitive information is displayed in a desensitized manner, protecting privacy while still allowing necessary verification. These security measures are designed to ensure the integrity and trustworthiness of electronic certificates.

4. Unified Format and Coding Rules

The standards unify the certificate numbers and identifiers nationwide for both types of electronic licenses. Dynamic information is updated in real-time from the public security traffic management information system. This provides a unified technical basis for sharing and mutual recognition of electronic certificates across regions, departments, and platforms. For businesses, this means smoother acceptance of electronic licenses when dealing with various government agencies or service providers.

Practical Implications for Foreign Founders

If you are a foreign founder running a company in China, these standards can affect your daily operations in several ways:

• Vehicle Management: Company-owned vehicles will have electronic licenses that can be authorized to employees for business use. This simplifies fleet management and reduces paperwork.
• Compliance and Verification: When renting or lending vehicles, or when dealing with authorities, electronic licenses can be quickly verified via the "Traffic Management 12123" app by scanning a QR code. This speeds up administrative processes.
• Cross-Regional Operations: Unified standards mean that electronic licenses issued in one region should be recognized in others, which is beneficial for businesses with multi-city operations.
• Security and Audit: The authorization mechanism provides a clear record of who used the license and for what purpose, helping maintain internal controls and prevent fraud.

While the standards take effect in 2027, foreign founders should familiarize themselves with these developments now to prepare their vehicle management and compliance strategies. The use of electronic licenses is expected to become more widespread, aligning with China's digital transformation goals.

How ChinaMNC Can Help

Navigating China's regulatory landscape can be complex for foreign entrepreneurs. ChinaMNC specializes in assisting foreign founders with company registration, ongoing operations, and compliance matters. If you have questions about how these new standards might affect your business, or if you need help with vehicle registration and digital license management, our team is here to assist.

For personalized guidance, contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535. We can help you register and operate your company in China efficiently.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.