China’s automakers are rapidly advancing assisted-driving technology, eager to capture a growing market. However, Beijing is pushing for a balanced approach—accelerate innovation but ensure safety and accountability.
Key Points:
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Rapid Innovation, Careful Oversight: Chinese regulators are finalizing new safety rules for driver-assistance systems following a fatal crash involving a Xiaomi SU7 sedan in March, which killed three occupants shortly after the driver resumed control from the system.
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Regulatory Approach:
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China bans terms like “smart” and “autonomous” in marketing to avoid overselling capabilities.
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Current rules allow automatic steering, braking, and acceleration only with driver engagement.
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New regulations will require hardware/software to monitor driver alertness and control readiness.
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Collaboration and Public Input:
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Regulators worked with Dongfeng and Huawei to draft rules, with public consultation ending recently.
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Plans to resume Level 3 validation tests this year after being paused post-Xiaomi crash; the first Level 3 vehicle approval expected in 2026.
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Level 3 Ambitions:
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Level 3 allows drivers to take eyes off the road under certain conditions—midway between basic driver-assist and full autonomy.
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China has promoted Level 3 tests and aims to be a global leader in assisted-driving tech.
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Industry Competition:
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China’s automakers like BYD and Zeekr are aggressively pushing Level 2 and Level 3 tech, often offering features at low or no additional cost.
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At the Shanghai auto show, Huawei and Geely’s Zeekr highlighted Level 3 readiness.
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Traditional foreign automakers like Mercedes-Benz and Volkswagen focus on advanced driver-assist features but hold back on Level 3 due to higher costs and liability concerns.
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Safety and Liability:
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New regulations hold manufacturers and suppliers liable for accidents caused by system failures, similar to recent UK legislation.
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Strategic Context:
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China is using this push to support its domestic auto industry, much like its earlier backing of electric vehicles.
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Over 60% of new cars sold in China this year are estimated to include Level 2 driver-assist features.
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Expert Insights:
Markus Muessig of Accenture Greater China notes that China’s “feel the stones to cross the river” approach—steady, cautious exploration of new tech—has been effective. Meanwhile, Mercedes-Benz’s CTO Markus Schaefer highlights the ongoing challenges with balancing cost and safety requirements for Level 3 systems.













