Published · Sierra Leone

China Publishes National Standard for Electronic Vehicle Licenses, Introducing Authorized Use Mechanism

China’s new national standard for electronic vehicle licenses, effective April 1, 2027, allows vehicle owners to authorize others to use their e-license with traceable records. For foreign founders, this means simpler digital verification and potential streamlined processes for company vehicle management.

China’s New Standard for Electronic Vehicle Licenses: What Foreign Founders Need to Know

Foreign entrepreneurs setting up and running a business in China must navigate a range of regulatory requirements, including those related to vehicle management. A recent national standard for electronic vehicle licenses (e-licenses) aims to standardize and secure digital documents, which could affect how companies manage their vehicle fleets and handle administrative procedures. The standard, approved by the State Administration for Market Regulation (Standardization Administration), will take effect on April 1, 2027.

Background: The Rollout of Electronic Licenses

China has been progressively introducing electronic versions of driving and vehicle licenses. By the end of 2021, electronic driving licenses were promoted nationwide, allowing drivers to apply for and display them via the “Traffic Management 12123” mobile app. Starting in November 2024, electronic vehicle licenses were rolled out across the country. To regulate the generation, processing, and sharing of these electronic documents, the Ministry of Public Security developed a series of national standards. The standard for electronic driving licenses took effect on July 1, 2026, and the new standard for electronic vehicle licenses will follow in 2027.

Key Features of the New Standard

Unified Information Requirements

The new standard specifies the information contained in an electronic vehicle license, including registration details such as vehicle type, license plate number, and vehicle identification number, as well as dynamic information like vehicle status. This ensures consistency and facilitates recognition across different systems. Similarly, the electronic driving license standard covers driver identity information (name, license number) and driving qualification details ( permitted vehicle types, accumulated points, license status).

Innovative Authorization Mechanism

A notable addition is the authorization feature for electronic vehicle licenses. Vehicle owners can grant permission to others to use their e-license for specific business scenarios. The standard includes fields for authorized user and purpose of use, and all authorization actions are recorded, creating a traceable audit trail to prevent misuse or impersonation. For foreign founders, this could simplify tasks like allowing employees to handle vehicle-related procedures on behalf of the company, while maintaining security.

Enhanced Security

Both electronic license standards employ the domestic SM2 cryptographic algorithm for digital signatures, providing anti-forgery and anti-tampering capabilities. Sensitive information is masked during display. These security measures help protect against fraud and ensure the integrity of electronic documents.

Standardized Format and Coding

The standards unify the numbering and identification of electronic licenses nationwide. Dynamic information is updated in real time from the public security traffic management information system. This provides a technical basis for sharing and mutual recognition of electronic licenses across regions, departments, and platforms, which can reduce administrative hurdles for businesses operating in multiple locations.

Practical Implications for Foreign Founders

For foreign entrepreneurs, these standards signal a move toward more digital and efficient vehicle-related administrative processes. Once implemented, individuals and companies can present electronic licenses, and verification can be done by scanning a QR code using the Traffic Management 12123 app. This could streamline procedures such as vehicle registration, inspections, and dealing with traffic violations, making it easier to manage company vehicles.

While the standards take effect in 2027, they reflect ongoing efforts to improve the business environment through digitalization. Foreign founders should stay informed about these developments as they may affect compliance and operational workflows. For now, it is advisable to ensure that any vehicle-related documentation is kept up to date and to familiarize yourself with the 12123 app, which is likely to become a central tool for vehicle management.

Conclusion

China’s new national standard for electronic vehicle licenses introduces authorized use and enhanced security features, aligning with broader digitalization trends. Foreign founders operating in China can benefit from increased convenience and traceability in vehicle management. As with any regulatory change, staying informed and seeking professional advice when needed is recommended.

Call to Action: For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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