China has urged its fast-growing autonomous vehicle industry to accelerate innovation while keeping safety at the core, as regulators attempt to strike a careful balance between speed and caution in the rollout of assisted-driving technology.
In newly published guidelines, the Ministry of Industry and Information Technology (MIIT) called for stricter oversight of driver-assistance systems while simultaneously encouraging manufacturers to expand real-world trials. The directive comes as Chinese cities push ahead with pilot programmes for autonomous vehicles, including robotaxis and advanced driver-assist features in passenger cars.
The policy sets out technical benchmarks for Level 2 and Level 3 driving systems, including more robust fail-safes, clear rules for handing control back to human drivers, and better real-time monitoring. At the same time, the MIIT wants automakers to widen their testing footprint beyond major hubs like Beijing and Shanghai, citing the need to test vehicles in more varied and unpredictable traffic conditions.
Industry analysts say the dual-track message reflects China’s ambition to dominate the global race for smart mobility while avoiding the regulatory gaps and high-profile mishaps seen elsewhere. Domestic carmakers, particularly those working with AI and chip firms, have been pouring investment into self-driving features, hoping to capture both domestic and overseas markets.
Several cities have already begun commercial trials. In Shenzhen and Wuhan, passengers can now hail autonomous taxis under controlled conditions. This latest regulatory update suggests trials will expand to second-tier cities, with Chengdu and Hangzhou likely to join the next phase.
But while innovation is moving fast, public confidence still lags behind. A recent poll by China’s Transport Association found that over half of respondents were hesitant to use vehicles with assisted-driving features, citing safety concerns and a lack of trust in AI systems. In response, the government is proposing a stricter liability regime, placing greater legal responsibility on manufacturers in the event of a system failure.
China’s push is underpinned by geopolitics as well as economics. With US and European firms pouring billions into autonomous technology, Chinese regulators are keen to create a framework that enables national champions to scale quickly while avoiding the kind of backlash faced by Western rivals. State funding, 5G networks, and designated smart road corridors are already in place to support expansion.
Still, challenges remain. Integrating sensors, software, and real-time data under all weather and traffic conditions is proving difficult, and inconsistencies in road infrastructure could complicate deployments outside major urban areas. Experts also warn that the rush to scale up should not outpace rigorous testing.
As China accelerates its transition toward autonomous mobility, the question is whether its model—centralised oversight paired with rapid rollout—can set a global standard. What is clear is that Beijing wants to lead the future of driving, but on its own terms.
REFH – newshub finance
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