The autonomous driving sector in China has surged ahead despite the disruptions caused by the COVID-19 pandemic. While many industries faced operational setbacks, self-driving technology has entered a phase of rapid expansion, propelled by favorable regulations, targeted policy support, and a growing ecosystem of developers eager to commercialize their innovations.
Shanghai has emerged as a focal point for this acceleration. In 2022, municipal authorities introduced measures aimed at advancing self-driving technology from pilot programs to broader commercial deployment. Initiatives include supporting Baidu and AutoX in scaling Robotaxi services in Jiading district, enabling trial operations of SAIC’s intelligent heavy trucks at Yangshan Port to reduce human resource dependence, and exploring autonomous public transport, unmanned sanitation, and automated distribution models. The city also backed legislative efforts in Pudong New Area to permit autonomous driving without in-car safety operators, a regulatory milestone that industry experts view as a catalyst for national progress. “It marked a breakthrough, and the proposal by a benchmark city like Shanghai will undoubtedly propel the industry’s further development,” said Dai Yifan, assistant dean at the Suzhou Automotive Research Institute of Tsinghua University. He emphasized that removing in-car safety operators does not eliminate oversight, as “remote monitoring systems are always there.”
Regulatory reform has played a decisive role. In August 2021, China updated its driverless car testing rules, allowing qualified firms to trial autonomous passenger and freight vehicles on highways and city roads. Eligibility requires real-time remote monitoring and the capability to record and store driving data for at least 90 seconds prior to any incident. By early 2022, 27 provinces and municipalities had enacted self-driving regulations, creating 16 demonstration zones and opening more than 3,500 kilometers of test roads.
This framework has nurtured explosive growth. Once a niche, autonomous driving has attracted substantial investment from both government and industry leaders, spawning a wave of start-ups intent on monetizing their technologies. Wu Gansha, chairman and CEO of UISEE, noted that “commercialization” defined the industry’s focus in 2021, with companies diversifying beyond Robotaxis into other autonomous driving scenarios to strengthen their strategic positioning. Services such as Robotaxis and autonomous delivery are viewed as optimal pathways for accumulating operational mileage and data, essential for refining safety and performance.
Major players have begun moving from demonstration to revenue-generating operations. In November 2021, Baidu and Pony.ai secured approval to operate paid driverless Robotaxi services in Beijing’s Yizhuang area, deploying up to 100 vehicles. UISEE, from its inception committed to full-scene autonomy, expanded into airports, industrial sites, and unmanned buses. By December 2021, its commercial autonomous driving mileage surpassed 1.2 million kilometers—a global first for such deployments. Applications range from driverless road sweepers and last-mile delivery vehicles to unmanned vending machines and port logistics systems. “China has taken a lead in the innovation of various scenario applications, and underlying technologies are also catching up quickly,” Dai observed.
Despite the sector’s promise, many companies remain in a phase where investment outpaces returns. Wu acknowledged this but pointed to a healthy rise in orders and the onset of large-scale commercialization in 2021. Chinese developers are also pursuing international opportunities. In January 2022, a UISEE-equipped autonomous delivery vehicle began operating in Saudi Arabia’s King Abdullah University of Science and Technology, providing last-mile services. “Despite the pandemic, domestic companies have resumed normal operations due to effective prevention and control in China. At the same time, the demand for unmanned services in overseas markets has increased due to the impact of the pandemic, which provided more business opportunities for Chinese companies,” Wu said.
Industry observers suggest that China’s autonomous driving momentum has significantly narrowed the gap with the United States, a stark contrast to the situation five years prior. Dai noted that some leading international automakers report EU and Japanese developers struggling to match China’s pace. Leveraging its extensive experience in the new-energy vehicle sector and strengths in digitalization, including big data analytics, China is positioned to further advance its standing in autonomous driving.