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)
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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."



Nvidia, AMD to Pay 15% of China Chip Sale Revenue to US Government

The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS/Tyrone Siu/File Photo
The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS/Tyrone Siu/File Photo
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Nvidia, AMD to Pay 15% of China Chip Sale Revenue to US Government

The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS/Tyrone Siu/File Photo
The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS/Tyrone Siu/File Photo

Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the US government, a US government official has confirmed.

President Donald Trump's administration halted the sale of advanced computer chips to China back in April over national security concerns, but Nvidia and AMD revealed in July that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development, Reuters reported.

The official, who insisted on anonymity to discuss a policy not yet formally announced, confirmed to The Associated Press the revenue sharing terms of the deal, and said the broad strokes of the initial report by The Financial Times were accurate.

The FT reports that Nvidia and AMD agreed to the financial arrangement as a condition for obtaining export license to resume sales to China.

Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration.

"We follow rules the US government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” Nvidia wrote in a statement to the AP. “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”

AMD did not immediately reply to a request for comment.

The top Democrat on a House panel focusing on competition with China raised concerns over the reported agreement, calling it “a dangerous misuse of export controls that undermines our national security.”

Rep. Raja Krishnamoorthi, the ranking member of the House Select Committee on China, said he would seek answers about the legal basis for this arrangement and demand full transparency from the administration.

“Our export control regime must be based on genuine security considerations, not creative taxation schemes disguised as national security policy,” he said. “Chip export controls aren’t bargaining chips, and they’re not casino chips either. We shouldn’t be gambling with our national security to raise revenue.”

Back in July, Nvidia argued that tight export controls around their chip sales would cost the company an extra $5.5 billion. They’ve argued that such limits hinder US competition in a sector in one of the world’s largest markets for technology, and have also warned that US export controls could end up pushing other countries toward China’s AI technology.

Commerce Secretary Howard Lutnick told CNBC in July that the renewed sale of Nvidia's chips in China was linked to a trade agreement made between the two countries on rare earth magnets.

Restrictions on sales of advanced chips to China have been central to the AI race between the world’s two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow US companies to keep their lead. Meanwhile, opponents say the export controls have loopholes — and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.