A concept photo of autonomous driving Illustration: VCG

Chinese autonomous driving company WeRide has received approval from the US state of California to test its driverless vehicles with passengers, a representative of WeRide told the Global Times on Wednesday. 

Experts see this as a positive signal for China and the US to expand collaboration in the autonomous driving sector amid the headwinds of US protectionism. They urged the US side to create a sound environment for fair competition for Chinese companies, including electric vehicles (EVs).

"The California Public Utilities Commission permit allows WeRide to conduct demo rides for guests who are not WeRide's employees. It is only for tests and demos, not open to the general public," said the representative.

WeRide, founded in 2017, is known for autonomous taxis, vans, buses and street sweepers. The company is seeking a valuation of as much as $5.02 billion in its IPO in the US.

It would be the second major China-based company to seek a US listing this year. In May, EV producer Zeekr debuted on the New York Stock Exchange, Reuters reported.

The approval highlights the Chinese company's advancements in autonomous driving technology. This also opens up opportunities for collaboration and fair competition between China and the US in the autonomous driving sector, experts said.

These tests will help fine-tune autonomous driving technology solutions. Conducting tests in the US will provide more reliable and accurate data, and help it attract more potential investment in the US, Zhang Xiang, secretary-general of the International Intelligent Vehicle Engineering Association, told the Global Times on Wednesday.

"Since China is one of the leading countries in autonomous driving technology, conducting tests in the US brings opportunities to the local market and positively affects the local automotive industry," Zhang said.

It is a positive sign, especially given the previous restrictive stance due to the US government's so-called data security concerns, Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Wednesday.

In the past, Chinese electric and autonomous driving vehicles faced significant obstacles in the US, leading many tests to be halted, Wu said.

The moves come as tensions between China and the US in the automobile sector have been escalating. The US Commerce Department is expected to propose barring Chinese software in autonomous and connected vehicles in the US in the coming weeks, Reuters reported on August 4, citing sources.

The US in May announced plans to increase the import tariff on Chinese EVs to 100 percent, a protectionist move that has been widely criticized by the industry.

Experts called for the US to provide a healthy environment for competition between the two countries in the self-driving and EV sectors, and they urged the US to create a fair and conducive environment for Chinese companies.

"In the long run, if the US aims to advance rapidly in EVs and autonomous driving, cutting off cooperation with the Chinese market wouldn't be a smart decision," Wu said.

China's intelligent driving technology and policies are steadily progressing.

Global consulting firm McKinsey & Co has forecast that China will become the world's largest market for self-driving vehicles, with revenue from such vehicles and mobility services exceeding $500 billion by 2030, the Xinhua News Agency reported.

Five ministries, including the Ministry of Industry and Information Technology and the Ministry of Transport, jointly issued a notice in July that designates 20 cities or urban agglomerations, including Beijing, Shanghai and Guangzhou in South China's Guangdong Province, as pilot areas for the application of intelligent networks integrating vehicles, roads and cloud, according to the Xinhua report.