China has resumed issuing licenses for Robotaxi vehicles after a three-month suspension due to malfunctions in Baidu's self-driving car system in Wuhan, intensifying its fight for leadership in the self-driving car market.
On July 23, 2026, at 12:13 PM, Bloomberg News reported that China has resumed issuing licenses for driverless taxis (robot axis) after suspending new issuances since April due to safety concerns arising from malfunctions of self-driving vehicles. This resumption of the process is happening gradually in some cities after regulators completed a major industry inspection.
Sources familiar with the matter revealed that an industry-wide safety review was completed in late June, leading some cities to begin issuing Robotaxi licenses again. This followed a previous strict investigation by Chinese authorities after a malfunction in Baidu Inc.'s self-driving vehicle system in Wuhan resulted in more than 100 Robotaxi vehicles being grounded.
The resumption of licensing opens the way for China's Robotaxi to resume expansion and reflects the Chinese government's continued focus on advanced technology amidst competition with the United States for leadership in the autonomous vehicle industry, which is expected to play a crucial role in the future of transportation.
Following the news, shares of robotaxi companies rose, with Baidu shares in Hong Kong gaining the most at 4.1%, while competitors like Pony AI and WeRide also saw gains.
One of the first companies to receive the new license is Momenta Global Ltd., which has been authorized to pilot robotaxi services in Shenzhen. The local government has revised regulations on connected vehicles, opening up opportunities to expand robotaxi services throughout the city and reducing market entry restrictions.
Meanwhile, there are signs that Baidu's Apollo Go project in Wuhan is resuming service, after users in China shared images and videos on social media since early July showing Baidu's driverless taxis back on the roads, some with security personnel inside.
However, neither the Chinese government nor Baidu has officially disclosed the cause of the outage in Wuhan, which triggered the authorities' suspension of issuing new licenses.
WeRide, one of China's largest robotaxi service providers, stated that it supports a clear, stable, and predictable regulatory framework to foster responsible development of autonomous vehicle technology, and affirmed its commitment to continuing cooperation with regulatory bodies and the industry.
Meanwhile, Beijing is drafting high-level regulations for self-driving cars to ensure safety, vehicle quality, and the AI technology used to control the systems.
Currently, Chinese companies like Baidu, Pony AI, and WeRide are competing with Alphabet's Waymo to expand robotaxi services into the global market. Chinese operators have advantages due to lower production costs and a strongly developed electric vehicle supply chain.
Reference: bloomberg.com
