TLDRs;
- Chinese self-driving firms shift focus to Europe amid U.S. restrictions on connected car technologies.
- QCraft, Deeproute.ai, and Momenta lead the charge, setting up data centers and testing Level-4 systems.
- European startups demand fair competition and stronger regulation to counter rapid Chinese expansion.
- The EU plans unified rules to catch up in the global race for autonomous vehicle dominance.
Blocked by U.S. market restrictions, Chinese self-driving car makers are speeding toward Europe in search of friendlier skies.
According to sources famiiar with the matter, companies like QCraft, Deeproute.ai, and Momenta are setting up shop across the continent, testing autonomous systems, signing data partnerships, and seeking regulatory approval.
China’s push comes as part of a broader national effort to dominate the global autonomous vehicle (AV) industry. With over half of new cars in China already equipped with self-driving capabilities, Beijing is crafting regulations to give domestic companies a clear roadmap and a global advantage.
“We’re focusing on Europe for our global future,” said Dong Li, CTO of QCraft, which announced plans for a new German headquarters at the Munich Auto Show. “There are barriers in the U.S. market,” he added, pointing to national security concerns over data collection.
Europe, by contrast, offers a more open , if still fragmented, regulatory environment.
Chinese Firms Target Europe for Growth
QCraft plans to sell its autonomous driving technology in Europe within two years. In China, its Level-4 systems, capable of operating for long stretches without human control, already power buses in 26 cities.
Meanwhile, Deeproute.ai is negotiating partnerships that could lead to a new European data center. Momenta, another leading Chinese firm, is partnering with Uber to test its Level-4 system in Germany next year, marking one of the largest collaborations between a Chinese tech firm and a global mobility giant.
Momenta is also deepening its relationships with automakers like Toyota, GM, and Mercedes-Benz. Mercedes has already begun testing Momenta-powered driver-assistance systems in Europe, signaling increasing integration between Chinese and European innovation.
Europe Struggles with Regulation and Competition
While European startups like Wayve and Fusion Processing are building their own autonomous systems, they face regulatory fragmentation and stiff competition. Only a few markets, including Germany and the UK, currently allow limited public testing beyond Level 2 systems, which still require drivers to remain attentive.
Jim Hutchinson, CEO of Fusion Processing, warns that the influx of Chinese firms could distort competition.
“If we want to have this technology, we need higher levels of regulation and a bit of intervention for a level playing field,” he said.
But others, like Alex Kendall, CEO of Wayve, welcome the challenge.
“Chinese competition will accelerate growth in a fledgling industry,” he said, noting that the global autonomous vehicle market remains wide open.
EU Seeks Unified Rules to Compete Globally
To stay competitive, the European Commission is pushing for unified regulations across the continent. European Commission President Ursula von der Leyen recently called for a continent-wide drive to develop self-driving cars, noting that the technology is already a reality in China and the U.S.
Berlin-based startup Vay is among those testing autonomous and remote-driving technologies in Germany. Co-founder Fabrizio Scelsi supports the EU’s regulatory harmonization efforts but urges governments to back domestic innovation.
