China is permitting trial operations in order to push intelligent vehicle services for the 2022 Winter Olympics.
The development hints that China is closing in on the US and Israel.
Licensed companies can run up to 50 vehicles and can potentially expand their fleets after six months.
Laying out a policy framework will boost the industry’s commercialization, experts say.
Regulators will allow driverless vehicle tests along 135 kilometers of the city’s public roads.
Clients will be eligible for as much as RMB 550,000 ($80,000) in compensation provided they followed instructions when parking.
The permit removes the barriers related to driving simulations for the Tier 1 supplier of smart connected vehicles.
With more than 2 million vehicles in circulation, Wuxi processes around 1.6 PB (petabyte) of traffic data each day on average.
Beijing took a significant step forward in April 2018, issuing its first national guidelines that allow cities in China to test self-driving cars on their roads.
Chonqing-based automaker Chang’an is the first to pilot its driverless vehicles in the zone.