China's EV dominance is already global, but the next front is autonomous driving. It's no longer just about the vehicle; it's about the AI-powered stack behind it: maps, sensors, monitoring, and infrastructure. For AI, smart cars aren't just another use case—they're the ultimate proving ground.

The US government under President Donald Trump initiated a new round of trade protection policies on April 3, 2025, imposing a 25% tariff on all automobiles produced outside the US and planning to further expand this to the automotive component supply chain starting May 3, 2025. This move has triggered a ripple effect across the global automotive industry, with China, as a major hub for automotive components, being particularly affected.

On March 29, a Xiaomi SU7 operating in Navigate on Autopilot (NOA) mode crashed on a highway in Anhui Province, killing three college-aged passengers. Despite detecting an obstacle and initiating braking, the vehicle collided with a roadside barrier at 97 km/h. The deadly crash quickly went viral on Chinese social media platforms.

As Tesla and Huawei continue to dominate headlines in China's autonomous driving race, another player is quietly reshaping the landscape. Founded in 2016, Momenta has captured more than 60% of China's urban Navigation on Autopilot (NOA) market for third-party suppliers, according to Xinhua News Agency. In a field crowded with tech giants and cash-burning startups, this stealth-mode contender has rapidly become a pivotal force in China's smart mobility sector.

At Nvidia GTC 2025, the discussion surrounding advanced autonomous driving heated up, with US automotive alliances and tech industry groups joining forces to urge President Donald Trump to take action. Their goal: to expedite the deployment of self-driving cars by overcoming current regulatory hurdles before China takes the lead in this emerging sector.

Chinese automaker BYD plans to dominate the world's largest car market in 2025 by making smart driving technology accessible in vehicles below CNY100,000 (approx. US$13,780), triggering rivals Geely and Changan to accelerate similar offerings. Industry sources confirm China's advanced driver assistance systems currently max out at Level 2+, requiring constant driver attention despite marketing that suggests otherwise.

Tesla is grappling with mounting international headwinds as geopolitical friction, regulatory uncertainty, and brand controversies collide. Straddling the divide between the US and China, the EV maker is catching heat from both sides—disrupting its supply chain, denting its image, and complicating expansion efforts.

BYD Co's sales last year surpassed the US$100 billion mark, leapfrogging Elon Musk's Tesla Inc on revenue, as the Chinese auto giant wows consumers with a range of electric and hybrid cars packed with high-tech features.

Chinese electric vehicle maker XPeng Motors believes the robotics industry will eventually surpass the automotive sector in scale, though consumer adoption may take several years. The company plans to initially focus on commercial applications in factories and retail environments.

With the collaboration between Nvidia and major US automaker General Motors (GM), AI is poised to take on a robotic form in car factories, promising to both boost production efficiency and advance autonomous driving technology.

With competitive pressure increasing in the Chinese market, compounded by various unfavorable factors globally, Tesla China announced on March 17 that it will offer a one-month free trial of its full self-driving (FSD) feature. This initiative is viewed as an urgent measure to stimulate sales in the Chinese market and demonstrates Tesla's effort to enhance competitiveness and reverse declining sales.

According to the China Association of Automobile Manufacturers, China's automobile export volume reached 5.859 million units in 2024, representing a year-over-year increase of 19.3%. This includes 4.574 million internal combustion engine vehicles and 1.284 million new energy vehicles.

The development of edge AI, driven by DeepSeek, has garnered attention and created opportunities for new suppliers aiming to position themselves in the AI servers market. YS Tech, primarily focused on automotive and consumer technology, has recently ventured into AI servers. General manager Robert Liu stated that the company will focus on Tier 2 suppliers and is targeting the cooling opportunities brought about by edge AI.

The Nvidia GPU Technology Conference (GTC) is eagerly awaited for updates on new GPUs and AI innovations, such as humanoid robots and autonomous vehicles, to which Taiwan is anticipated to continue being a significant contributor.

Escalating trade tensions under President Trump's new tariff regime are forcing Tesla to recalibrate its China strategy, with deeper Baidu partnerships emerging as a crucial lifeline. The electric vehicle (EV) maker faces growing data restrictions as Chinese regulations prevent its 2 million vehicles from transmitting information back to the US for driving systems training, while US policy simultaneously blocks AI software training in China—effectively crippling Tesla's Full Self-Driving (FSD) capabilities in the world's largest auto market.

BYD, China's automotive giant, has recently taken the lead in the race for intelligent driving equality, triggering a nationwide push among car manufacturers to accelerate the adoption of smarter, more autonomous vehicles. The rise of Deepseek, a promising new player in the field, appears poised to significantly impact China's intelligent driving sector, potentially reshaping the future of the industry.

For three years, China's automotive market has been embroiled in a price-cutting war, evolving from a tussle between new energy vehicles and traditional cars to a contest for smart driving capabilities. Automakers are vying for market share with rapid tech upgrades and aggressive pricing for new models, while the used car market faces increasing turmoil.

The concept of digital twins initially emerged in consumer applications for AR/VR/MR, but its future lies in smart manufacturing. Like quantum computing, this is not a technology that will take 20 years to materialize, but a tangible reality within the next decade. Hardware evolution may progress even faster than expected, but the real challenge lies in educating users and making these new technologies mainstream applications.

In Ruifang District, New Taipei City, once known for its bustling mining industry, the economic landscape transformed with the creation of the Ruifang Industrial Zone in 1981. Among the new enterprises, Hushan Autoparts emerged in 1983, starting small and gradually expanding.

In the Chinese automotive market, emerging manufacturers such as NIO, Xpeng, Li Auto, and Leapmotor have long been emblematic of the industry's shift toward self-developed intelligent driving technology. Historically, these companies were known for their high degree of in-house innovation in autonomous driving systems. However, as intelligent driving technologies gain broader adoption across China, many of these new players are now increasingly turning to outsourcing partnerships.

Unmanned vehicles plunging from the sky to the sea have emerged as pivotal assets on modern battlefields. While drones have long dominated the spotlight, nations worldwide are now exploring the untapped potential of unmanned maritime vessels. In Taiwan, beyond the state-led Huilong and Kuachi projects spearheaded by the National Chung-Shan Institute of Science and Technology to develop surface and subsurface autonomous vehicles, private enterprises are also making strides.

Tesla has begun rolling out a software update in China, introducing Autopilot driver-assistance features similar to the Full Self-Driving (FSD) system in the US—without explicitly branding it as FSD. The update expands Autopilot's reach into China, a key market where local competitors are advancing autonomous driving technologies.

Chinese electric vehicle leader BYD recently launched its smart driving system, God's Eye, aiming to offer advanced driver-assistance features at a low cost, making smart driving more accessible to everyday consumers. However, competitors seem to be rather unimpressed.

Geely Auto (Geely) recently introduced the DeepSeek large language model, set to enable significant leaps in human-machine interface (HMI) upgrades for its vehicles in the future. This move may also send shockwaves through the autonomous driving chip and solution platforms, posing potential threats to the industry's leading players.

BYD Electronics is positioned to become the primary beneficiary of BYD's upcoming intelligent driving expansion, according to a CLSA research report. At its 30th-anniversary event on February 10, 2025, BYD will unveil its comprehensive autonomous driving strategy, supported by a CNY100 billion investment in technology development.