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Tesla moved one step closer to launching its Full Self-Driving program in China this week when the electric vehicle manufacturer reached a deal with a major Chinese tech company.

Baidu, the Chinese internet search engine, announced this weekend that it will provide lane-level navigation services to Tesla vehicles. The data can help autonomous vehicles safely navigate complex traffic. 

The deal also moves Tesla closer to government approval of its Full Self-Driving program. Under Chinese law, a foreign company such as Tesla would need to enter into a partnership with a Chinese company to secure mapping qualifications before receiving government approval. 



Tesla and Baidu have worked together since 2020, when the Chinese company began supplying road-level mapping services, which are less precise than the lane-level version. 

If Tesla can secure government approval for its Full Self-Driving software, it would greatly expand the company’s data collection capabilities in the world’s biggest auto market. Data from the Chinese market likely would be used to improve Tesla’s autonomous driving technology. 

The adoption of Full Self-Driving in China could lead to higher sales in the region, where Tesla is competing with cheaper, Chinese-made vehicles. Last year, China’s BYD briefly overtook Tesla as the world’s best-selling EV manufacturer.

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