China Unveils First Mandatory National Standard for L3/L4 Autonomous Driving, Effective 2027

From June 17 to 24, 2024, the draft mandatory national standard "Safety Requirements for Automated Driving Systems of Intelligent Connected Vehicles" (submitted for approval) completed its public consultation period. This standard marks China’s first mandatory national regulation specifically targeting Level 3 (L3) and Level 4 (L4) autonomous driving systems and is scheduled to take effect on July 1, 2027. Upon implementation, new L3 and L4 autonomous vehicles that fail to meet this standard will be ineligible for official type approval and prohibited from being sold in the market. Previously, China only had voluntary standards for autonomous driving levels, leaving advanced intelligent driving functions in a regulatory environment characterized by “corporate self-discipline and lenient oversight.” Some vehicle models equipped with hardware capable only of Level 2 (L2) functionality used ambiguous marketing claims that misled consumers. Certain automakers rolled out over-the-air (OTA) software updates without sufficient validation and lacked mandatory fallback mechanisms. Additionally, unclear handover responsibilities between human drivers and L3 systems, ineffective traceability of accident data, and the absence of unified safety validation protocols for algorithms have made it difficult for consumers to seek redress and complicated the assignment of liability in accidents. The new standard applies to specific vehicle types but excludes automated parking systems. It represents a systematic upgrade over GB/T 44721–2024. Its key institutional innovation is the introduction of a “Safety Case” mechanism, requiring automakers to systematically demonstrate the safety of their automated driving systems across all operational scenarios. The standard adopts differentiated regulatory approaches for L3 and L4: for L3, it emphasizes safety during the human-machine handover process; for L4, it mandates that the system independently handle risks in all scenarios. Following implementation, industry competition will shift toward comprehensive end-to-end safety capabilities. Although compliance costs will rise, leading automakers possess the scale to absorb these expenses, while smaller players may face heightened pressure or even elimination. Currently, several major automakers have already initiated compliance measures: XPeng has clarified rumors regarding its hardware capabilities and disclosed internal progress on compliance; BYD has completed full-chain in-house development and is positioned to rapidly launch compliant L3 vehicles; Huawei’s ADS system already meets the technical requirements; Li Auto has unveiled its self-developed intelligent driving chip; and Chery has begun collaborating with Huawei’s subsidiary, Yinwang.