China balances speed & safety on self‑driving tech

By Staff Reporter | 4 July 2025

BEIJING — China’s government is finalising tough new safety rules for driver‑assistance systems even as it presses automakers to bring more advanced “Level 3” hands‑off features to market as early as next year.

The move comes after a fatal March crash involving a Xiaomi SU7 sedan that had been running on an assisted‑driving mode seconds before impact. Officials say the tragedy underlines the need to “innovate fast, but responsibly.”

“We welcome progress, but the public must be protected,” a Ministry of Industry and Information Technology (MIIT) official told reporters, speaking on background.

Why the urgency?

Chinese carmakers such as BYD, Changan and Geely’s Zeekr have poured money into software that can steer, brake and accelerate with minimal driver input. More than 60 percent of new cars sold in China this year carry Level 2 features. Analysts say Level 3—where the car handles driving under limited conditions while the driver can look away—will be the next big sales battleground.

New draft rules

• Require cameras and sensors that constantly check if the driver is alert.

• Ban marketing terms like “fully autonomous” until cars are certified.

• Hold automakers—and key parts suppliers—legally liable if the system fails.

Huawei and state‑owned Dongfeng helped draft the standards, now open for public comment until 5 July.

Trials paused, then restarted

Regulators had asked Changan to start official Level 3 road tests in April, but paused the plan after the Xiaomi crash. Sources say Beijing wants trials back on the road by year‑end and hopes to certify the first Level 3 car in 2026.

“Feel the stones as we cross the river,” said Markus Muessig of Accenture Greater China, echoing Deng Xiaoping’s mantra for cautious experimentation.

Industry reaction

• BYD is rolling out its “God’s Eye” driver‑assist package for free, betting safety tweaks will be minor.

• Huawei says its highway Level 3 system is ready after 600 million km in simulation.

• Zeekr showed its luxury 9X SUV with Level 3 hardware “ready for mass production” once rules allow.

Western brands are more wary. Mercedes‑Benz CTO Markus Schaefer told Reuters the added redundancy for Level 3 “costs much more” and could widen the price gap with Chinese rivals.

Global stakes

Clear but flexible rules could give Chinese automakers a head start over U.S. and European peers, who often complain their regulators move slower. Analysts warn, however, that any high‑profile accident could bring swift public backlash.

FACT BOX China’s push for safer smart driving