Self-driving car. Photo: iStock

The Beijing Commission of Transport and two other departments have co-released the first local guidance on self-driving cars in China, aiming to encourage, support and further regulate R&D and commercialization, The Paper reported.

The new regulations have made clear that those who apply for a driving test must be an independent legal entity registered in China. It could be car manufacturers, parts suppliers, software developers or even Internet companies.

All of them, however, must have the ability to afford compensation. The document requires entities to purchase traffic accident liability insurance no less than five million yuan (US$755,000) for each test car before running the road test.

Also, each test vehicle must be equipped with a driver who will be able to handle the vehicle at anytime during the test.