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Autonomous driving faces scrutiny, curbs on exports to China and balancing investment, with potential recovery in the next five to 10 years

Chinese companies' self-driving car testing in California, US, plunged by about 70% in 2023, according to state government data. The decline in testing in California's challenging road environment could impact Chinese companies' ability to deploy the technology globally, according to a report published by Nikkei Asia on March 6.

Leading the list of testing companies were US firms Waymo, Cruise and Zoox, while Chinese players fell across the board. Only 13 of the 44 vehicles registered for testing by Chinese companies logged even a few autonomous driving miles, with only three traveling more than 100 miles. Didi Research America withdrew from California's testing program in February.

Chinese developers of self-driving technology had sought to use US testing not only as a way to try out their systems in different road conditions, but also as a way to recruit talent. However, heightened scrutiny of the field could lead to broader curbs on exports of advanced semiconductors to China, and Chinese companies may be finding it difficult to balance their investment in autonomous driving, with the potential for recovery in the next five to 10 years.

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