China Hits the Brakes on Robotaxi Licenses After Baidu Chaos

In a sudden move, China has suspended the issuance of new licenses for autonomous vehicles, according to Bloomberg, which cites people familiar with the matter. This development comes on the heels of a chaotic incident last month in Wuhan, where dozens of robotaxis operated by tech giant Baidu came to a grinding halt in traffic, causing significant disruption. The suspension of new licenses will effectively put the brakes on companies looking to expand their driverless car fleets, enter new cities, or initiate fresh test projects.

For now, it remains unclear when authorities will resume issuing new licenses. The incident in Wuhan appears to have set off alarm bells in Beijing, prompting regulators to urge local governments to conduct a thorough review of the sector. The goal is to prevent similar episodes of chaos from unfolding in the future.

Baidu, a major player in China's autonomous vehicle space, has been at the forefront of the country's push to develop and deploy robotaxis. The company's Wuhan incident has raised questions about the readiness of this technology for widespread deployment. As China navigates the complexities of regulating autonomous vehicles, one thing is clear: the country's authorities are keen to ensure that the development of this sector prioritizes safety and responsible innovation.