China is finalising new safety rules for driver-assistance systems as regulators try to balance innovation with safety in the fast-growing market for assisted-driving cars.
The move follows a March accident involving a Xiaomi SU7 sedan that killed three people after the driver took control from the assisted-driving system just seconds before the crash.
Regulators are working to tighten oversight of how these systems are marketed and used, while encouraging companies to continue developing advanced technologies. Officials want to prevent carmakers from overstating what their systems can do, even as they push the industry to roll out more advanced features like Level 3 assisted-driving, which allows drivers to look away from the road in certain situations.
New rules will focus on ensuring systems can monitor a driver’s alertness and ability to retake control quickly. Companies like Dongfeng and Huawei have been involved in drafting the regulations, with a public feedback period ending this week.
China’s Ministry of Industry and Information Technology has not commented.
Testing of Level 3 systems was paused earlier this year after the Xiaomi accident, although Beijing still hopes to resume trials later this year and approve its first Level 3 vehicle by 2026. Changan was initially selected to begin validation testing in April, but those plans were delayed.
Level 2 systems, which handle steering, braking, and acceleration with the driver still in control, have become common in China. Tesla, Xiaomi, and BYD all offer these features, with BYD giving its “God’s Eye” software to all models at no extra charge.
More than 60% of cars sold in China this year are expected to include Level 2 technology.
China’s approach stands in contrast to the U.S., where companies have voiced concern over the lack of a clear regulatory framework. By setting clear but flexible rules, Beijing hopes to keep its domestic automakers ahead in global competition.
At the Shanghai auto show, Huawei said it is ready to deploy a Level 3 system for highways and showed footage of passengers singing while the car drove itself. Geely’s Zeekr brand revealed a new SUV with Level 3 features, saying it could begin production in the third quarter if rules permit.
Zeekr is applying to be included in the next group of automakers approved for validation testing.
Foreign automakers like Mercedes-Benz and Volkswagen presented advanced features but avoided crossing into Level 3 territory due to cost and liability concerns. Chinese regulators are expected to hold automakers and suppliers responsible if their systems fail, following a similar move by the UK last year.
China’s push for assisted-driving mirrors its earlier strategy to grow its electric vehicle market. Last year, nine automakers were selected for public tests to support wider adoption of self-driving technology.
