China Calls for Balanced Approach to Assisted-Driving Technology: Move Fast but with Caution
July 4, 2025 – As Chinese automakers surge ahead in the race to develop advanced assisted-driving technologies, Beijing is urging a dual approach: accelerate innovation while maintaining stringent safety standards. This nuanced stance comes amid increasing attention to driver-assistance systems following a fatal crash in March involving a Xiaomi SU7 sedan, which resulted in three deaths shortly after control shifted from the assisted-driving system back to the driver.
Finalizing New Safety Regulations for Driver-Assistance Systems
In response to growing concerns about the reliability and safety of assisted-driving technologies, Chinese regulators are in the final stages of drafting new safety rules specifically targeting driver-assistance systems. The regulations seek to strike a delicate balance—encouraging technological advancement without allowing companies to overstate the capabilities of their systems.
Key focuses of the upcoming rules include hardware and software requirements designed to monitor driver awareness and ensure timely control handover between the automated system and the driver. The involvement of major domestic players such as Dongfeng and technology conglomerate Huawei in the rulemaking process highlights the government’s collaborative approach. A public consultation phase concluded this week, underlining the authorities’ efforts to fine-tune the framework comprehensively.
Level 3 Autonomy: China’s Next Frontier
The Chinese government is also keen to promote Level 3 assisted-driving technology, which allows drivers to disengage from constant supervision in specific scenarios—marking a significant step up from the current Level 2 systems, which require continuous driver attentiveness.
Although plans for Level 3 validation tests, initially led by state-owned automaker Changan, were temporarily paused following the Xiaomi incident, officials remain committed to resuming testing soon and aim to greenlight the first Level 3 vehicles on Chinese roads by 2026. Industry analysts consider Level 3 technologies to be the next major battleground in China’s fiercely competitive automotive market. Over 60% of new cars sold this year in China are estimated to feature Level 2 capabilities, with automakers such as BYD offering advanced driver-assistance software free across their lineups. These features range from adaptive cruise control to management of complex urban traffic, albeit under driver supervision.
Balancing Innovation and Safety, While Competing Globally
China’s regulatory approach represents a contrast to the slower regulatory progress in the United States, where some autonomous vehicle developers have voiced frustration over the lack of a formal system to validate and test emerging technologies.
Markus Muessig, Auto Industry Lead at Accenture Greater China, noted that regulators and industries in China follow the pragmatic "feel the stones to cross the river" approach—steadily experimenting with novel technologies while managing risks, a strategy that has yielded success in this market.
Additionally, the Chinese government plans to reinforce accountability by holding manufacturers and suppliers liable for accidents caused by system failures, mirroring liability frameworks adopted in countries such as the United Kingdom.
Industry Developments and Competitive Landscape
At the Shanghai Auto Show in April, several Chinese companies showcased their advances toward Level 3 systems. Huawei highlighted its highway-capable Level 3 autonomous driving system with extensive real-world simulation testing. Meanwhile, Geely’s Zeekr brand introduced the luxury SUV 9X equipped with Level 3-ready software, projecting mass production within this year depending on regulatory approval.
International incumbents like Mercedes-Benz and Volkswagen are advancing their driver-assistance offerings but have yet to fully embrace Level 3 functionality, citing the high safety and cost barriers involved. Mercedes-Benz’s CTO Markus Schaefer remarked on the escalating costs of meeting the stringent safety requirements necessary for Level 3 systems.
The Road Ahead
With consumer demand for innovative assisted-driving features rising and homegrown manufacturers rapidly advancing their capabilities, China aims to maintain global leadership in automotive technology. The country’s dual emphasis on rapid deployment and rigorous safety oversight could provide a competitive edge in the global market for autonomous and assisted-driving vehicles.
Meanwhile, investigations into the Xiaomi crash continue, with the company cooperating fully with authorities as regulations continue to evolve.
Reporting by Zhang Yan, Victoria Waldersee, and Nick Carey; Edited by Mike Colias, Brenda Goh, and Sam Holmes; Photography by Tingshu Wang/REUTERS
