Regulators this week have been finalising new safety rules for driver-assistance systems as Beijing sharpens scrutiny of the technology following an accident involving a Xiaomi, SU7 sedan in March.

That incident killed three occupants when their car crashed seconds after the driver took control from the assisted-driving system.

While Chinese officials want to prevent carmakers from overselling the capabilities of such systems, they are also threading the needle between innovation and safety to ensure their automakers don't lose out to United States (US) and European rivals.

Setting clear regulations for assisted-driving tech without slowing its advancement could give China's industry an edge over global competitors, analysts say. 

This approach is in stark contrast to the US market, where companies pursuing autonomous cars have expressed frustration that the government has not implemented a regulatory system to validate and test the technology. 

Markus Muessig, Auto Industry lead at Accenture Greater China, said China's regulators and industries have long followed former Chinese leader Deng Xiaoping's "feel the stones to cross the river" philosophy. 

The expression means to steadily explore new, uncertain technologies, which "has proven very successful for this market," he said. 

--Reuters--