Why is China putting the brakes on self-driving claims on cars?

There is currently no commercially available passenger vehicle in the market with the equivalent of Level 5 driving autonomy. Driverless robotaxis deployed by Chinese companies such as Apollo Go and WeRide have been operating in cities such as Shenzen, Wuhan, Guangzhou, Nanjing and Beijing. In other parts of the world, Waymo’s robotaxi service is available in limited areas in several cities in the United States. The current generation of robotaxis used by these companies generally fall under Level 4 autonomy.

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In February 2025, China’s Ministry of Industry and Information Technology (MIIT) issued new guidelines for automakers, cautioning them against overstating the capabilities of their ADAS. The MIIT stressed that marketing language must not suggest a vehicle is capable of fully autonomous or FSD capabilities if it only features basic driving assistance.

Under these rules, companies are cautioned not to overstate the effectiveness of the driving aids and avoid language that implies otherwise. For vehicles with driving assistance, the vehicle should be able to safely stop in case it detects that the driver is no longer actively driving. The MIIT also required companies to submit a report within 48 hours in case of a vehicle collision when ADAS is active or when it fails. 

In mid-April, MIIT took an additional step by making its policy on full self-driving more clear. It held a meeting with major car manufacturers and ordered for a ban of public testing of driving assistance software. Automakers also need to secure government approval before making enhancements to existing ADAS software via over-the-air updates as well as introducing new features.

These stricter regulations come after a fatal crash that killed three people while aboard a Xiaomi SU7 EV in March. The vehicle’s navigation on autopilot (NOA) intelligent driving assistance was engaged when it was travelling at 116 km/h as it entered a construction zone. While the vehicle detected the obstacle and alerted the driver who resumed control, the vehicle hit a concrete post at 97 km/h.

Under the new directive, automakers can no longer use terms such as “autonomous and automatic driving,” “smart driving,”  “self-driving,” and “advanced smart driving”. The new term that should be used is “combined assisted driving.” Car makers should also use the SAE automation level classification, namely Level 2 assisted driving. OTA updates should be fully verified and tested first before being pushed to the users. Emergency software updates for vehicles will follow standard recall procedures.

Even fully automated parking features that don't require direct driver input are now banned. This includes driverless valet parking and remote control features. Driver monitoring systems must be active at all times and cannot be turned off. A driver should keep their hands on the wheel at all times. If drivers remove their hands from the wheel for 60 seconds, the car will have to slow down and safely pull over. 

Another important change aims to discourage carmakers from providing frequent over-the-air updates. Emergency updates will require following the recall procedures and the State Administration for Market Regulation approval. The new regulations will mostly impact carmakers positioned at the forefront of autonomous driving technology, like Tesla, Huawei, Xpeng, Li Auto and Nio.

At the Shanghai Auto Show that started last April 23, automakers have largely followed the new directive. Most of the car makers emphasised safety first instead of ADAS or autonomous driving features. Other makers chose to highlight upcoming models instead. 

With the pause in developing full self-driving technology, it’s quite safe to say that China’s automakers will focus on other areas to innovate and iterate. While traditional global manufacturers often take six to eight years to develop a single model, Chinese companies can roll out new cars in as little as 18 months, making them hard to beat in terms of agility.

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