- Chinese companies like Baidu are competing with US counterparts in the driverless technology sector, benefitting from a more favorable regulatory environment for innovation in China.
- The introduction of driverless technology raises concerns about potential job displacement, highlighting the need to balance technological innovation with labor market conditions.
OUR TAKE
China’s government has been supportive of autonomous vehicle development, as seen in recent rulings allowing self-driving cars to be tested on public roads in certain regions, indicating a commitment to fostering innovation and technological advancements in the transportation sector. It also showcases China’s advancements in autonomous vehicle technology.
-Lia XU, BTW reporter
What happened
Recently, more than 500 electric robotaxis built by Baidu are operating in Wuhan. The company decided to deploy an additional 1,000 by the end of the year. It raises about the impact artificial intelligence could have on jobs in China and around the world.
Chinese companies like Baidu are competing with US counterparts like Waymo and Tesla in the driverless technology sector, with China’s regulatory environment being more conducive to self-driving car innovation, providing Chinese firms with opportunities to lead in this field. Despite the progress made in driverless technology, there are concerns about public acceptance.
“It is exciting to witness robotaxis become reality, yet it’s not clear how taxi drivers will face the challenge, and how the government will strike a balance between technological breakthroughs and weak labor market conditions,” Zhiwei Zhang, chief economist of Pinpoint Asset Management Ltd. in Hong Kong, wrote in a recent note.
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Why it’s important
The introduction of driverless technology in Wuhan has sparked concerns about the potential impact on jobs, with residents and experts alike expressing worries about the economic implications of embracing AI-driven transportation systems. The economic implications of adopting AI-driven transportation systems underscore the importance of considering the impact on jobs and the labour market while advancing technological breakthroughs.
If all taxi drivers lose their jobs, then that’s something that governments have to be worried about. So the government need to balance technological innovation with labour market conditions. China’s proactive approach to driverless-car development positions the country as a leader in autonomous vehicle innovation, contrasting with the US’s less stringent regulations for automated-driving technology.
Although it has caused some concern at present, it remains uncertain how the future will develop. Under China’s leadership in driverless technology and the challenges posed by job displacement, it’s necessary to consider the social and economic impacts of AI-driven transportation systems.
