(Yicai Global) July 7 -- Shenzhen has produced the country’s first full set of regulations regarding intelligent connected vehicles, clearing legal obstacles to the sale and use of driverless vehicles, the Nanfang Daily reported.

There are three types of smart cars, according to the regulations which were released on July 5 and will take effect from Aug. 1. These are ‘hands on’ shared control, ‘hands off’ autonomous driving where the vehicle can perform most functions itself, and the ‘eyes off’ and ‘mind off’ levels of self-driving autos. Self-driving refers to Levels Three to Five of autonomous driving of which Levels Three and Four still must have a safety officer in the car.

In the event of an accident caused by the vehicle, if there is a safety officer in the auto, that person will bear full responsibility and be liable to pay compensation to the victim, according to the new rules. If there is no driver, the owner of the vehicle is responsible.

Should the accident be due to a defect in the electric car, the driver or owner of the EV can claim compensation from the manufacturer or dealer afterwards.

Smart cars can run on roads in designated areas of the city, according to the regulations. An area with relatively complete vehicle-road communication infrastructure can be made available for tests and commercial demonstrations. District governments will be responsible for authorizing these tests and demonstrations.

Shenzhen is leading China in autonomous driving technology development. The city has 800 companies engaged in the sector, of which 415 were established in the past five years.

Editor: Kim Taylor