China's Growing 'Robotaxi' Fleet Sparks Concern, Wonder on Streets

The photo taken on August 1, 2024 shows a driverless robotaxi autonomous vehicle, developed as part of tech giant Baidu's Apollo Go self-driving project driving along next to a taxi on a street in Wuhan, in central China's Hubei province. (Photo by Pedro PARDO / AFP)
The photo taken on August 1, 2024 shows a driverless robotaxi autonomous vehicle, developed as part of tech giant Baidu's Apollo Go self-driving project driving along next to a taxi on a street in Wuhan, in central China's Hubei province. (Photo by Pedro PARDO / AFP)
TT
20

China's Growing 'Robotaxi' Fleet Sparks Concern, Wonder on Streets

The photo taken on August 1, 2024 shows a driverless robotaxi autonomous vehicle, developed as part of tech giant Baidu's Apollo Go self-driving project driving along next to a taxi on a street in Wuhan, in central China's Hubei province. (Photo by Pedro PARDO / AFP)
The photo taken on August 1, 2024 shows a driverless robotaxi autonomous vehicle, developed as part of tech giant Baidu's Apollo Go self-driving project driving along next to a taxi on a street in Wuhan, in central China's Hubei province. (Photo by Pedro PARDO / AFP)

Turning heads as they cruise past office buildings and malls, driverless taxis are slowly spreading through Chinese cities, prompting both wariness and wonder.

China's tech companies and automakers have poured billions of dollars into self-driving technology in recent years in an effort to catch industry leaders in the United States.

Now the central city of Wuhan boasts one of the world's largest networks of self-driving cars, home to a fleet of over 500 taxis that can be hailed on an app just like regular rides.

At one intersection in an industrial area of Wuhan, AFP reporters saw at least five robotaxis passing each other as they navigated regular traffic.

"It looks kind of magical, like a sci-fi movie," a local surnamed Yang told AFP.

But not everyone shares Yang's awe.

Debate around safety was sparked in April when a Huawei-backed Aito car was involved in a fatal accident, with the company saying its automatic braking system failed.

A minor collision between a jaywalker and a Wuhan robotaxi last month re-ignited concerns.

Taxi drivers and workers in traditional ride-hailing companies have also raised fears of being replaced by artificial intelligence -- although the technology is far from fully developed.

- Five to 500 -

Wuhan's driverless cabs are part of tech giant Baidu's Apollo Go project, which first received licenses to operate in the city in 2022.

Initially only five robocars ferried passengers around 13 square kilometers (five square miles) of the city of around 14 million.

Baidu says the taxis now operate in a 3,000 square kilometer patch -- more than a third of the total land area of Wuhan, including a small part of the city center.

In comparison, US leader Waymo says the largest area it covers is 816 square kilometers, in Arizona.

When a car reaches its pickup point, riders scan a QR code with their phones to unlock the vehicle -- with the front seats blocked off over safety concerns.

The fares are currently heavily discounted, with a thirty-minute ride taken by AFP costing just 39 yuan ($5.43) compared with 64 yuan in a normal taxi.

"They are stealing our rice bowls, so of course we don't like them," Wuhan taxi driver Deng Haibing told AFP, using a popular Chinese term for livelihoods.

Deng said he fears robotaxi companies will push traditional drivers out of business with subsidized fares, before raising prices once they achieve domination -- similar to the strategy employed by ride-hailing apps in the 2010s.

"Currently the impact isn't too big because robotaxis aren't fully popularized and can't drive everywhere yet," Deng said.

- 'Simply not ready' -

The robotaxi fleet is a tiny fraction of the tens of thousands of taxis and ride-hailing cars in Wuhan.

More and more Chinese cities are rolling out policies to promote self-driving services though, part of a national push for tech supremacy.

Baidu and domestic rival Pony.ai have for years tested models of varying autonomy levels in industrial parks around the country.

Shanghai issued its first batch of provisional permits for fully driverless cars last month, and the capital Beijing has approved fully autonomous robotaxis in suburban areas.

The southwest city of Chongqing and southern tech hub of Shenzhen also have pilot projects underway.

Technology wise, there's still a long way to go before self-driving taxis become ubiquitous though, according to Tom Nunlist, tech policy analyst at Trivium China.

"Everybody seems to think autonomous driving is inevitable at this point, and frankly, I don't know that it is," he told AFP.

"Presently fully autonomous driving tech is simply not ready for large-scale deployment," he said.

Even in Wuhan's Apollo Go taxis -- which can spot obstacles and wait scrupulously at intersections -- ultimate responsibility for safety still lies with human officers monitoring rides remotely.

During one ride in an Apollo Go car, one manipulated the car's built-in touchscreen to remind AFP reporters to put on their seatbelts.

"Safety personnel provide strong assurances for your ride via remote 5G assistance technology," the Apollo Go app tells users.

Robotaxis are also far from able to replicate the human touch.

"Some customers have disabilities and (driverless cars) definitely wouldn't be able to help them, and some passengers are carrying large items," ride-hailing driver Zhao told AFP.

"Only a human can help."



Samsung Says Trade Turmoil Raises Chip Business Volatilities, May Hit Phone Demand

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
TT
20

Samsung Says Trade Turmoil Raises Chip Business Volatilities, May Hit Phone Demand

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

South Korean technology giant Samsung Electronics warned on Wednesday US tariffs could cut demand for products such as smartphones, making it difficult to predict future performance.
According to Reuters, Samsung said it expected its semiconductor business to encounter greater uncertainties throughout the year, while its smartphone shipments faced downward pressure in the second quarter.
The cautious outlook from one of the world's biggest electronics manufacturers reflects the uncertainties roiling global trade due to US President Donald Trump's tariff war, and comes a day after General Motors pulled its annual forecast.
The world's largest memory chipmaker reported a small rise in first-quarter operating profit as customers concerned about US tariffs rushed to purchase smartphones and commodity chips, mitigating the impact of its underperforming artificial intelligence chip business.
It reported 6.7 trillion won ($4.68 billion) in operating profit for the quarter ended in March, up 1.2% from a year earlier and in line with its earlier estimate.
Samsung shares, one of the worst-performing major tech stocks last year, fell 0.4% in line with the broader market.
Steep US tariffs on Chinese goods and toughening restrictions on AI chip sales to China, Samsung's top market, threaten to dampen demand for some of the electronics components the company produces such as chips and smartphone displays.
Trump's "reciprocal" tariffs, most of which have been suspended until July, threaten to hit dozens of countries including Vietnam and South Korea where Samsung produces smartphones and displays.
Samsung said it was considering relocating the production of TVs and home appliances in response to the tariffs.
Chip demand is expected to remain solid in the second quarter, driven by AI servers and preemptive purchasing activities after the pause in tariffs, Samsung said.
But it warned that the frontloading of chip shipments by some customers may have a negative impact on demand later this year.
“We believe that demand uncertainties are growing in the second half as a result of recent changes in tariff policies in major countries, and strengthening of AI chip export controls,” Kim Jae-june, a Samsung vice president in the memory division, said on an earnings call.
Samsung CFO Park Soon-cheol said however that "we cautiously expect the overall performance to gradually improve as we move into the second half, assuming the easing of current uncertainties".
Some analysts were unconvinced, saying the company did not give detailed guidance for its struggling AI chip business.
"With pull-in demand still ongoing and macro uncertainty lingering, the explanation for the 'first-half low, second-half rebound' outlook was lacking," Ryu Young-ho, a senior analyst at NH Investment & Securities said.
AI CHIPS
Samsung's mobile device and network business reported a 23% rise in profit to 4.3 trillion won during the period, reaching its highest level in four years, helped by the latest version of the flagship Galaxy S model with AI features.
Samsung has accelerated smartphone production in Vietnam, India and South Korea ahead of the US duties, a person familiar with the matter told Reuters earlier.
While mobile performed strongly, the chip division's operating profit slumped 42% to 1.1 trillion won from a year earlier despite chip stockpiling by some customers.
Samsung reported a fall in sales of High Bandwidth Memory (HBM) - used in AI processors - due in part to US export controls on AI chips.
Samsung said it had supplied samples of its enhanced HBM3E products to major customers and expected HBM sales, which have bottomed out in the first quarter, to "gradually" rise from the second quarter, without offering detailed targets.
Analysts estimate that about one third of Samsung's HBM revenue has come from China, and it lags behind cross-town rival SK Hynix in supplying such chips to Nvidia in the United States.
SK Hynix last week logged its second-highest quarterly operating profit in the first quarter with a 158% jump to 7.4 trillion won, boosted by strong AI-related demand.
Revenue rose 10% to 79.1 trillion won in the January-to-March period, in line with its earlier estimate of 79 trillion won.