Huawei Technologies, Baidu Inc's (NASDAQ: BIDU) auto driving unit, and Alibaba Group Holding Limited's (NYSE: BABA) mapping service are collaborating to establish technology standards for autonomous driving on China's highways.
This initiative is part of the nation's plan to integrate new technology and enhance its road network to accommodate the emerging autonomous driving industry.
The companies are working with the Ministry of Transport's road science academy and affiliated companies, including Qianxun SI, a spatiotemporal intelligent infrastructure company, SCMP reports.
The update follows reports of China's plans to ramp up its budget deficit for 2023 to help the economy accomplish the growth target.
China is investing heavily in upgrading its highway system to make it compatible with autonomous driving. In 2022, the country allocated 1.6 trillion yuan ($219 billion) to highway upgrades, marking a 7.3% increase from the previous year.
The infrastructure for autonomous driving encompasses centralized cloud control platforms, traffic sensors, communication and positioning equipment, roadside computing, power supplies, and network security facilities.
The new guidelines, effective from December 1, outline the integration of cloud platforms for storing, processing, and exchanging traffic information with automated vehicles.
Traffic sensors will monitor traffic, incidents, and weather conditions, while roadside computing facilities will collect and publish this information.
Network security facilities will ensure the integrity and confidentiality of software and data, SCMP notes.
The country has already approved several automated driving experiments by local tech firms, including Baidu's robotaxi fleets in designated areas in cities like Beijing, Wuhan, and Chongqing.
In the previous year, sales of vehicles with some level of autonomous driving capability surged by 45.6%, reaching 7 million units.
Price Action: BABA shares traded lower by 0.18% at $87.01 premarket on the last check Wednesday.