- tech360.tv
China's Leading Self-Driving Tech Firms Withdraw from US Amid Geopolitical Tensions
China's leading self-driving technology companies, such as Baidu and Didi Chuxing, have significantly reduced road tests in the United States. The US Commerce Department's ban on Chinese autonomous driving software will affect new models beginning in 2027. Chinese autonomous cars' mileage in California dropped by 74%, despite an overall increase in autonomous miles.
These cutbacks, implemented over the last few years, preceded the recent announcement by the US Commerce Department regarding the ban on autonomous driving software from China. This regulation will only affect new models released after 2027, sparing many Chinese players from immediate consequences.
According to data from the Department of Motor Vehicles (DMV), the total distance covered by Chinese autonomous cars on public roads in California, a state known for its friendliness towards self-driving vehicles, decreased by nearly 74% to 121,428 miles in the 12 months ending November 2023 compared to the previous year. This decline contrasts with the overall trend, as DMV data show a record 9 million autonomous miles in the same period, representing a nearly 60% increase year on year.
In 2023, Chinese companies such as Didi saw a significant 90% drop in self-driving test mileage, prompting Didi to withdraw from the autonomous vehicle testing program in California. Other Chinese startups, such as QCraft, DeepRoute.ai, and Inceptio, with test driving records in 2021 and 2022, have also withdrawn, according to the DMV.
The remaining companies with test permits have seen a significant drop in mileage. AutoX and Pony.ai, two autonomous driving startups founded in Silicon Valley but based in China, saw their test vehicles travel 84% and 82% fewer miles between December 2022 and November 2023, respectively, than the previous year.
Baidu, a major player in autonomous driving in China that operates under the Apollo brand, saw a 34.5% decrease in mileage during the same period. Despite this decline, Baidu still has a California permit to test cars with and without safety drivers, and its most recent collision report to the DMV is from October 2023. Neither of the companies mentioned has responded to requests for comment.
Engineers who previously worked for Chinese self-driving companies in the United States stated that they participated in road tests there because a regulatory framework had been established early on and a large talent pool was available. However, they stated that most Chinese companies have reduced their operations in the United States due to rising tensions between Washington and Beijing, as well as improved road testing environments in major Chinese cities in recent years.
Geopolitical tensions have heightened scrutiny of Chinese autonomous driving companies conducting research in the United States. Last year, some US lawmakers proposed more stringent measures against Chinese vehicle startups due to data privacy concerns. In February, the United States Commerce Department launched an investigation into foreign-made hardware and software in connected cars, particularly from China. Last month, a new rule was proposed that would prohibit Chinese hardware and software from being integrated into vehicle connectivity and automated driving systems.
China's top self-driving tech firms, like Baidu and Didi Chuxing, have significantly reduced road tests in the US.
The US Commerce Department's ban on Chinese autonomous driving software will affect new models from 2027.
Chinese autonomous cars' mileage in California dropped by 74%, contrasting with the overall increase in autonomous miles.
Source: SCMP