We believe that China will become a leading force in AV technology for a number of reasons:
Chinese AV companies are catching up to its Western peers technologically and will take a leading position as they have an exceptionally high innovation rate. For one, China has an existential problem of traffic gridlock and pollution in its large cities. Getting AVs on the roads as soon as possible will be a crucial part of the solution. Furthermore, Chinese companies have much larger quantities of available data to train self-driving software compared to the West and there is a relentless competition between Chinese AV players, which is pushing them to innovate at an incredible speed. Finally, Chinese tech firms are already world leaders in building online ecosystems and mobility services. This will be the main value-generating segment of the industry, shifting the power balance to these firms.