China Drafts New Autonomous Vehicle Rules to Clarify Liability, Safety

April 23, 2025 – China has taken a major step toward formalizing self-driving car regulations by introducing a draft amendment to its Road Traffic Safety Law that dedicates an entire chapter to autonomous vehicles (AVs). The revision, submitted on Tuesday for a first reading to the Standing Committee of the National People’s Congress, seeks to address long-standing gaps in liability, safety oversight, and consumer protection as the country races to lead in autonomous transport.

While the existing law dates back to 2004 and has seen only piecemeal amendments, the new draft signals a systematic overhaul. It defines key terms, outlines conditions for public road operation, and—critically—assigns responsibility for traffic violations to manufacturers or importers when the vehicle’s self-driving system is engaged. This marks a clear departure from the current framework, where human drivers typically bear full responsibility.

Under the draft, automakers and importers must first prove that their vehicles can follow traffic rules before obtaining production or import approval. Once registered, autonomous driving functions can only be activated under designated operating conditions, and unauthorized modifications are prohibited. If a traffic violation occurs while the AV system is active, the manufacturer or importer must handle the violation—or prove the system was not at fault.

The draft also mandates compulsory motor vehicle accident liability insurance for AVs and encourages commercial coverage. In addition, it requires manufacturers to ensure cybersecurity, data security, and truthful marketing—a direct response to the proliferation of exaggerated claims about “intelligent driving” and “automatic parking” in recent years.

“This revision marks a shift from patchwork amendments toward a more systematic legal framework for autonomous driving,” said Cui Dongshu, secretary-general of the passenger car market information council under the China Automobile Dealers Association. “The key significance lies in clarifying responsibility. When autonomous driving functions are activated, the manufacturer is accountable—not the driver.”

The move comes as China’s AV market expands rapidly, with companies like Baidu, Pony.ai, and WeRide testing robotaxis in dozens of cities, and Tesla reportedly pushing for full self-driving approval in the country. Until now, responsibility for accidents involving AVs has been handled on a case-by-case basis, creating legal uncertainty for both companies and consumers.

U.S. perspective and global implications

The draft stands in contrast to the patchwork of state-level AV regulations in the United States, where the National Highway Traffic Safety Administration (NHTSA) has issued voluntary guidelines but federal legislation remains stalled. In the U.S., liability often falls on the driver—even in Level 2 systems—though manufacturers can be held responsible under product liability law. China’s approach, by making manufacturers directly liable for system-related violations, could pressure automakers globally to adopt clearer safety standards and data recording requirements.

“China’s proposed law is a clear signal to the industry: if you sell self-driving technology, you own the consequences,” said Dr. Markus Wagner, a transportation policy expert at the University of Michigan. “That could accelerate the development of more robust safety validation and monitoring systems, especially as Chinese AV companies seek to expand overseas.”

The draft also includes provisions on distracted driving, electric bicycles, road-occupying activities, and traffic risks associated with delivery platforms—reflecting the broader challenges of urban mobility in China. The full text contains 170 articles across nine chapters.

What’s next

The amendment is now open for deliberation. It will likely undergo several rounds of review before a final vote, expected later this year. If passed, it would take effect after a transitional period, giving automakers time to comply with new testing and registration requirements.

Industry observers note that China’s move could serve as a template for other countries developing AV laws, particularly in emerging markets where autonomous driving is being tested with fewer regulatory guardrails. The combination of clear liability, mandatory insurance, and data security requirements could become a benchmark for responsible AV deployment.

For now, the draft represents the most comprehensive attempt by any major economy to legislate autonomous driving at the national level—and its outcome will be closely watched by regulators, automakers, and insurers worldwide.