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

China has approved a national standard for electronic vehicle licenses, introducing an authorization mechanism that allows vehicle owners to delegate use. The standard takes effect on April 1, 2027. Here’s what foreign founders operating in China should understand.

China’s New Electronic Vehicle License Standard: Key Points for Foreign Founders

Foreign founders running companies in China often need to manage vehicles for business purposes. A recent national standard for electronic vehicle licenses could simplify how these documents are used and verified. The Standardization Administration of China (SAC), under the State Administration for Market Regulation (SAMR), has approved the national standard “Traffic Management Electronic Certificates – Motor Vehicle Driving License.” The standard will take effect on April 1, 2027.

The new standard introduces a mechanism that allows vehicle owners to authorize others to use their electronic vehicle license for specific business scenarios. All authorization records are traceable, which helps prevent misuse or impersonation. This could be particularly useful for companies that need to delegate vehicle-related tasks to employees or agents.

Background: Electronic Licenses in China

Electronic driving licenses were rolled out nationwide in late 2021, allowing drivers to apply for and display them via the “Traffic Management 12123” mobile app. Electronic vehicle licenses became available nationwide 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 the series, “Traffic Management Electronic Certificates – Motor Vehicle Driving License,” took effect on July 1, 2026. The newly approved standard for electronic vehicle licenses complements it. Together, they cover key aspects of electronic certificate management.

What the Standards Cover

Unified Certificate Information Requirements

The standard for electronic driving licenses specifies the information to be included, such as the driver’s name, license number, permitted vehicle types, accumulated points, and license status. The standard for electronic vehicle licenses specifies registration information (vehicle type, plate number, vehicle identification number) and dynamic information such as vehicle status.

Innovative Authorization Mechanism

The electronic vehicle license standard adds authorization information fields, including the authorized user and the purpose of use. Vehicle owners can authorize others to use their electronic vehicle license for specific business scenarios, with all actions logged and traceable. This aims to prevent misuse and impersonation.

Enhanced Security Technical Protection

Both standards require data files to be digitally signed using the domestic SM2 cryptographic algorithm, providing anti-forgery and anti-tampering capabilities. Sensitive information is displayed in a masked format.

Unified Format and Coding Rules

The certificate numbers and identifiers for both electronic licenses are unified nationwide. 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.

Practical Implications for Foreign Founders

For foreign founders operating companies in China, these standards could streamline vehicle-related administrative tasks. The authorization mechanism allows business owners to delegate the use of electronic vehicle licenses to employees or agents for specific purposes, with a clear audit trail. This can be useful for tasks such as vehicle registration, inspections, or other procedures that require presenting a vehicle license.

After the standard takes effect, verifying the authenticity of an electronic driving license or vehicle license will be possible by scanning a QR code using the Traffic Management 12123 app. This could make it easier for businesses to verify documents when needed, reducing paperwork and potential fraud.

Foreign founders should note that the standard applies to electronic vehicle licenses issued in China. The use of the 12123 app and the authorization features will likely require a Chinese phone number and possibly a local digital identity. It is advisable to stay informed about implementation details as the effective date approaches.

Conclusion

China’s new national standard for electronic vehicle licenses introduces a structured approach to digital vehicle documentation, with features that could benefit businesses managing vehicle fleets or delegating vehicle-related tasks. Foreign founders should monitor further announcements from Chinese authorities regarding implementation and compliance requirements.

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

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.