Image Source: Visual China

Beijing, July 6 (TMTPOST) – China’s tech innovation hub Shenzhen has passed a groundbreaking law that allows autonomous cars to hit city roads.

The new law, which will take effect on August 1, is the first law or regulation in China that governs the running of Internet-based smart cars. Under the new law, Internet-based smart cars can go on open roads after registration with transportation authorities. 

Internet smart cars are cars that can be safely driven by autonomous driving system on the roads. As an innovation hub, Shenzhen has a leading Internet smart car industry in China. In 2021, Shenzhen’s Internet smart car industry generated revenues of 106.6 billion yuan.

The existing law and regulation have failed to catch up with the development of Internet smart cars. Internet smart cars have been facing challenges such as having troubles entering the market, acquiring a car plate and generate profits. The Municipal People's Congress Standing Committee of Shenzhen has made use of its legislative power as a Special Economic Zone to provide law and regulations for the management of Internet smart cars, including managing Internet smart cars on the road, registration and traffic accidents.

Shenzhen has also clarified legal responsibilities in car accidents involving Internet smart cars. It is stated that if Internet smart cars with human drivers violate traffic rules, the human drivers will bear legal responsibilities for the violations. If an autonomous car without a human driver violates traffic rules, all humans on the car, as well as the car’s manager, will bear legal responsibilities for the violation. However, if the Internet smart car is faulty, compensations can be requested from its manufacturers and sellers.