In recent months, the autonomous vehicle industry has witnessed several significant milestones. On December 18th, Beijing introduced new regulations for self-driving technology, announcing the launch of its first designated test road. Just two days later, Xiong’an New District welcomed Baidu Apollo’s autonomous vehicles onto the streets. The collaboration between Xiong’an and Baidu is set to promote smart transportation services, including "smart buses" and driverless solutions, as part of pilot projects in Xi’an.
Baidu is considered the leading force in China's autonomous driving sector, representing the country’s highest level of innovation in this field. From a driving perspective, Baidu’s autonomous vehicles operate like cautious novice drivers—meticulous in observing their surroundings and avoiding risky maneuvers. However, when it comes to lane changes or speed adjustments, they tend to brake abruptly, which can feel a bit harsh. To improve, these vehicles need more real-world exposure and refinement.
The government’s openness to emerging technologies plays a crucial role in fostering innovation. For highly debated fields like autonomous driving, governmental support is essential. On one hand, self-driving technology can drive transformation across the transportation sector, boosting industries such as automotive, logistics, and telecommunications. On the other hand, ethical and legal responsibilities in the event of accidents remain ambiguous.
In July, Baidu CEO Li Yanhong took an autonomous car for a test drive in Wuhuan, Beijing, earning what was called “China’s first ticket for a car without a driver.†However, due to the lack of legal framework at the time, the ride wasn’t officially recognized as autonomous driving—it violated traffic rules. While this demonstrated regulatory caution, it also highlighted the challenges of operating in a legal gray area.
Five months later, Beijing released new autonomous driving regulations, clarifying that during test periods, the test driver would be held legally responsible for any accidents or violations. This resolved a major legal obstacle, allowing self-driving cars to operate on public roads with greater clarity.
More importantly, the updated rules permit road tests in certain areas and timeframes without disrupting regular traffic. As a result, Beijing became the second city globally to allow real-world testing of autonomous vehicles. This move provides critical support to China’s unmanned vehicle industry and could reshape the global landscape of autonomous technology.
Currently, China lags behind the U.S. in the autonomous vehicle sector, but before this, only California in the U.S. allowed real-road testing. This made California a hub for autonomous tech companies. According to a report by CITIC Securities, since 2014, the California Department of Motor Vehicles has issued over 45 road test licenses to companies worldwide, with 14 from China or Chinese backgrounds—accounting for 31%. This shows China’s growing influence in the field.
Looking ahead, Baidu Apollo plans to launch limited autonomous driving features on specific roads in January. Without similar policies in place, Chinese companies would have to conduct tests in California, which is costly and inconvenient. Now, with Beijing’s new regulations, the industry gains a major policy advantage, enabling real-world testing closer to home.
China’s vast auto market makes it essential for global automakers to engage. In the traditional era, missing China meant losing out. In the age of autonomous vehicles, this holds even more weight. Companies aiming to enter the Chinese market must conduct on-site tests, and cities like Beijing are now becoming key players in attracting talent, technology, and investment.
Autonomous vehicles navigating busy Chinese streets reflect the government’s increasing ability to support innovation. By removing policy barriers and affirming the direction, the government allows companies to refine their strategies and accelerate development. With Beijing leading the way, China may soon become a global center for autonomous vehicle innovation, creating a dual-horizon model alongside the U.S.
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