China is taking significant steps to bolster its position in the intelligent connected vehicle (ICV) industry by supporting companies in the smart vehicle supply chain. The country aims to establish "innovation consortia" to promote innovation and set standards for assisted and autonomous driving technologies by 2025.
By mid-2023, over 42% of new passenger vehicles in China had already achieved Level 2 automation, allowing limited autonomous driving with driver readiness. Looking ahead, Baidu's Apollo Go leads the way in Level 3 automation with a commercial driverless ride-hailing service in Shenzhen. Despite geopolitical tensions and technology export restrictions from the United States, China is excelling in advanced autonomous driving technology, positioning itself as a global leader in the industry despite competition from Western companies like Tesla.