China's top court clarifies liability as intelligent driving gains ground

China's top court has issued judicial guidance clarifying how courts should determine liability in disputes involving autonomous driving and driver-assistance vehicles, adding a new layer to the country's evolving regulatory framework for intelligent vehicles.

The Supreme People's Court said in an opinion released last week that when a vehicle defect and driver error combine to cause damage involving a vehicle with driver assistance technology, the injured party may seek compensation from both the driver and the vehicle manufacturer or seller.

More than 70 percent of new passenger vehicles sold in China so far in 2026 have been equipped with Level 2 driver-assistance functions, while more than 30 percent feature navigation-assisted driving, or NOA, according to the Ministry of Industry and Information Technology.

As the technology has become mainstream, automakers have stressed that drivers are responsible for the safe operation of vehicles equipped with driver-assistance systems.

Huawei, for example, describes its Qiankun intelligent driving system as an assistance system rather than a substitute for the driver, while Nio says drivers remain responsible for monitoring the system and taking control when necessary.

But the Supreme People's Court makes it clear that the rule does not mean automakers automatically become liable whenever a driver-assistance vehicle is involved in an accident.

Where an accident is caused by a driver's violation of traffic rules, the mere fact that the vehicle's driver-assistance function had limitations would not by itself establish the manufacturer's or seller's liability.

But where a product defect and a driver's failure to exercise due care both contribute to the same damage, the two can constitute multiple causes of harm, with liability determined according to the respective contribution and degree of fault.

The top court's opinion also addresses potentially misleading marketing, an issue that has come under greater regulatory scrutiny following a fatal accident involving a Xiaomi car last year.

If manufacturers or sellers make false or misleading claims about a vehicle's level of automation, intelligence, performance or intended use, and such claims harm consumers' legitimate rights, courts should support claims for civil liability under relevant laws, it says.

Chinese regulators have been building a broader safety framework around intelligent vehicles.

In February 2025, the MIIT and the State Administration for Market Regulation issued rules strengthening the management of intelligent connected vehicle market access, recalls and over-the-air software updates.

The rules require automakers to conduct sufficient testing and verification of driver-assistance systems, clarify system boundaries and safety responses and report incidents involving system failures and vehicle collisions.

China had already begun testing a separate regulatory pathway for higher-level automated driving. In 2023, the MIIT and three other government departments launched a pilot program for the market access and road use of intelligent connected vehicles with Level 3 and Level 4 automated-driving functions.

In June, China also issued a mandatory national standard for the safety of Level 2 driver-assistance systems. The standard, developed under the MIIT, is scheduled to take effect on Jan 1, 2027.

The standard sets safety requirements covering system functions, data recording, vehicle manufacturers' safety responsibilities, human-machine interaction, user instructions and training.

It also requires manufacturers to clearly inform users about the system's capabilities, limitations and operating conditions.

The car industry has also begun experimenting with a different approach at the commercial level.

In May, BYD introduced a one-year safety guarantee for its urban navigation function on vehicles equipped with certain advanced versions of its driver-assistance systems.

Under the scheme, when the function is used in compliance with applicable requirements and the vehicle is involved in an at-fault traffic accident, BYD says it will cover direct economic losses attributable to the vehicle, including vehicle repair costs, third-party property damage and personal injury losses, within the scope of the guarantee.

Such programs do not change the legal allocation of liability, but illustrate how automakers are beginning to assume some accident-related financial risk as they promote increasingly sophisticated driver-assistance functions.

lifusheng@chinadaily.com.cn