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."



Analysts Warn US Could Be Handing Chip Market to China

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
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Analysts Warn US Could Be Handing Chip Market to China

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)

As the Trump administration attempts to choke off exports of strategically important computer chips to China, experts say the effort might well backfire, fueling innovation at Chinese firms that could help them seize the world semiconductor market.

"What's actually happening is that the US government right now is handing China a big win as it tries to get their own chip business going," said Jack Gold, principal analyst at J.Gold associates.

"Once they're competitive," he told AFP, "they'll start selling around the world and people will buy their chips."

When that happens, he added, it will be difficult for US chip makers to reclaim lost market share.

Silicon Valley semiconductor star Nvidia and its US rival Advanced Micro Devices (AMD) expect big financial hits from new US licensing requirements for semiconductors exported to China, they notified regulators this week.

Nvidia expects the new rules to cost it $5.5 billion, while AMD forecast it could sap as much as $800 million from the company's bottom line, according to filings with the US Securities and Exchange Commission (SEC).

Administration officials told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the company said.

The United States had already restricted exports to China, the world's biggest buyer of chips, of Nvidia's most sophisticated graphics processing units (GPUs), designed to power top-end artificial intelligence models.

Nvidia essentially developed the H20 chip for the Chinese market, aiming to maximize performance while meeting previous US export rules, but the new licensing requirements pose a roadblock, according to Gold.

For AMD, the new US export control measure applies to its MI308 GPUs, which are designed for high-performance applications like gaming and artificial intelligence, it said in a filing.

It noted that there are no guarantee licenses for sales to China will be granted.

- Opportunity for China? -

Independent tech analyst Rob Enderle predicted Chinese chip makers -- likely led by the huge Huawei corporation -- will ramp up efforts to snatch the lead in the market.

"It's going to be a godsend for China as they spin up their own microprocessor business," Enderle said of the tightened US export rules.

"This will be a really quick way to hand over US leadership in microprocessors and GPUs."

The Chinese government has ample resources and motivation to bolster its chip industry, according to Gold.

He said while US President Donald Trump might think he can "bully people" to achieve his objectives, "the worldwide economy is not like that."

Instead, Trump's tariffs have alienated allies, increasing their incentive to turn to China for chips, the analyst said.

"Across the board, this is going to create real problems for US companies competitively," Enderle said.

"Companies located overseas are suddenly going to be in much better shape to compete."

Nvidia chief executive Jensen Huang has said publicly that the AI chip powerhouse can comply with the new US requirements without sacrificing technological progress, adding that nothing will stop the global advancement of artificial intelligence.

"Nvidia is one of the most important pieces in this (US) chess game with China," Wedbush analyst Dan Ives said in a note to investors.

"The Trump administration knows there is one chip and company fueling the AI Revolution and it's Nvidia," he said, and so it placed "a 'Do Not Enter' sign in front of China" to slow its progress.

Ives warned, however, that the chip wars are not over. He expects "more punches to be thrown by both sides."