China has called on the auto industry to proceed with caution as assisted-driving technology advances rapidly.

China’s automakers are outpacing global competitors in the rollout of assisted-driving tech, driven by consumer demand for rapid innovation.

However, regulators are signaling a clear message: advance boldly — but responsibly, according to Reuters.

Regulators are finalizing new safety rules for driver-assistance systems as Beijing ramps up scrutiny following a deadly March crash involving a Xiaomi SU7 sedan.

Three people died when the vehicle slammed into a tree just seconds after the driver disengaged the assisted-driving mode.

Officials aim to curb exaggerated marketing of autonomous features, while carefully balancing safety with innovation — ensuring Chinese automakers remain competitive against U.S. and European rivals.

Analysts say that by setting clear rules without stifling innovation, China may gain a competitive advantage in assisted-driving technology.

This contrasts sharply with the U.S., where autonomous vehicle firms have voiced frustration over the lack of a regulatory framework for testing and validation.

The Auto Lead at Accenture Greater China, Markus Muessig, likened Beijing’s cautious but adaptive strategy to Deng Xiaoping’s famous adage: “feeling the stones to cross the river.”

The expression refers to cautiously navigating uncertain terrain — a strategy that “has proven very successful for this market,” he noted.

The upcoming rules will target both hardware and software systems that track a driver’s alertness and ability to regain control when needed.

To shape the regulations, authorities brought in Chinese automaker Dongfeng and tech giant Huawei, while also inviting public feedback during a month-long consultation period that ends Friday.