China is proposing a comprehensive revision to its Road Traffic Safety Law that includes a dedicated chapter on autonomous vehicles, aiming to enhance the legal framework governing this rapidly evolving sector. The draft revision was submitted on August 25, 2026, to the Standing Committee of the National People’s Congress for its initial review.

The updated draft, which encompasses 170 articles across nine chapters, defines key concepts such as autonomous vehicles and driver-assistance functions. It establishes conditions under which autonomous vehicles may be operated on public roads, sets principles for addressing traffic violations involving such vehicles, and outlines related insurance requirements. Additionally, it clarifies the legal responsibilities of manufacturers and importers when vehicles equipped with autonomous driving capabilities are involved in traffic infractions.

Under the proposed rules, an autonomous vehicle is described as one capable of performing all dynamic driving tasks continuously within specific operating conditions. In contrast, driver-assistance functions are designed to support the driver in completing certain driving tasks and do not qualify as full autonomy. Vehicles operating without activated autonomous systems, including those with driver-assistance features only, would continue to be managed under existing regulations for conventional vehicles.

Before production approval or import permission is granted, manufacturers and importers must demonstrate that their autonomous vehicles comply with relevant road traffic laws through standardized testing. Once registered, the autonomous driving functions of these vehicles may only be activated under designated operating parameters, with unauthorized activation or modification explicitly prohibited.

Liability provisions in the draft assign responsibility for traffic violations occurring during autonomous driving to vehicle makers or importers. Should manufacturers contest the link between a violation and the autonomous system, they must provide evidence to support their claim. The draft also mandates compulsory motor vehicle traffic accident liability insurance for autonomous vehicles and encourages the purchase of commercial coverage.

To ensure safety and security, manufacturers and importers would be required to meet standards for road safety, cybersecurity, and data protection. False or exaggerated claims about autonomous driving functions would be prohibited. Industry experts have noted that these measures mark a shift from previous piecemeal amendments toward a more cohesive regulatory structure. According to Cui Dongshu, secretary-general of the China Automobile Dealers Association’s passenger car market information council, the most significant development lies in clearly delineating responsibility between human drivers and autonomous systems, providing greater clarity for consumers and enhancing accountability for automakers.

Beyond autonomous vehicles, the draft also targets broader road safety challenges. It proposes penalties ranging from fines between 200 yuan and 500 yuan (approximately $30 to $75) and the possible suspension of a driver’s license for three months for distracted driving behaviors such as using handheld phones or watching videos. The legislation would further restrict unauthorized road use for non-traffic activities, directing authorities to intervene in cases where recreational or fitness activities obstruct traffic flow.

The current Road Traffic Safety Law, which took effect in 2004, has undergone several amendments, but the proposed revision reflects the government’s intent to keep pace with socioeconomic developments and advances in transportation technology, aiming for a safer and more systematically regulated road environment.