BEIJING, Oct 16 (Reuters) - China's state security

ministry said that a foreign company had been found to have

illegally conducted geographic mapping activities in the country

under the guise of autonomous driving research and outsourcing

to a licensed Chinese mapping firm.

The ministry did not disclose the names of either company in

a statement on its WeChat account on Wednesday.

The foreign company, ineligible for geographic surveying and

mapping activities in China, "purchased a number of cars and

equipped them with high-precision radar, GPS, optical lenses and

other gear," read the statement.

In addition to directly instructing the Chinese company to

conduct surveying and mapping in many Chinese provinces, the

foreign company appointed foreign technicians to give "practical

guidance" to mapping staffers with the Chinese firm, enabling

the latter to transfer its acquired data overseas, the ministry

alleged.

Most of the data the foreign company has collected have been

determined to be state secrets, according to the ministry, which

said state security organs, together with relevant departments,

had carried out joint law enforcement activities.

The affected companies and relevant responsible personnel

have been held legally accountable, the state security ministry

said, without elaborating.

China has strictly regulated mapping activities and data,

which are key to developing autonomous driving, due to national

security concerns. No foreign firm is qualified for mapping in

China and data collected by vehicles made by foreign automakers

such as Tesla in China has to be stored locally.

The U.S. Commerce Department has also proposed prohibiting

Chinese software and hardware in connected and autonomous

vehicles on American roads due to national security concerns.

Also on Wednesday, a Chinese cybersecurity industry group

recommended that Intel ( INTC ) products sold in China should be

subject to a security review, alleging the U.S. chipmaker has

"constantly harmed" the country's national security and

interests.