China Strength­en­ing En­ter­prise Com­pli­ance Su­per­vi­sion

China's Foreign Trade (English) - - Law & Case - By Guo Yan

Strength­en­ing le­git­i­mate busi­ness op­er­a­tions has al­ready be­come the con­sen­sus among en­ter­prises across the world. Strict com­pli­ance gov­er­nance is not only es­sen­tial to en­ter­prises them­selves, but also con­sti­tutes an im­por­tant part of the in­ter­na­tion­al­iza­tion and le­gal­iza­tion of the busi­ness en­vi­ron­ment.” On May 4th, Jiang Zeng­wei, the Chair­man of the China Coun­cil for the Pro­mo­tion of In­ter­na­tional Trade pointed out, dur­ing the Launch Con­fer­ence of the Na­tional En­ter­prises’ Com­pli­ance Com­mit­tee of the CCPIT, “we have es­tab­lished this com­mit­tee fol­low the tide of com­pli­ant de­vel­op­ment of cor­po­ra­tions, as well as to adapt to the in­ter­na­tion­al­iza­tion of the man­age­ment of en­ter­prises.”

The timely es­tab­lish­ment of the Na­tional En­ter­prises’ Com­pli­ance Com­mit­tee

“A bet­ter un­der­stand­ing of the reg­u­la­tions and prac­tices of in­ter­na­tional trade is key for the China’s tran­si­tion from a big trade na­tion to a pow­er­ful one. These rules are also im­por­tant pre­con­di­tions for busi­ness op­er­a­tions. How­ever, we are far from tak­ing them se­ri­ously, and there is still much room for im­prove­ment,” said Jiang Zeng­wei. He also pointed out that in the fu­ture, only en­ter­prises with lead­ing tech­nol­ogy and man­age­ment skills, as well as im­pec­ca­ble com­pli­ance sys­tems will be com­pet­i­tive enough in the global mar­ket; other­wise they will be washed out by the vig­or­ous com­pe­ti­tion.

All del­e­gates present at the meet­ing agreed that the launch of the Na­tional En­ter­prises’ Com­pli­ance Com­mit­tee of CCPIT came at the right time

Ex­ec­u­tive Vice Pres­i­dent of China En­ter­prise Fed­er­a­tion Zhu Hon­gren stated that the United States, with its dom­i­nant po­si­tion in the global mar­ket, the mo­nop­oly of ad­van­tages of high and new tech­nolo­gies, and the ex­trater­ri­to­rial ju­ris­dic­tion mech­a­nism of the Long-arm Act, has to some ex­tent trans­lated com­pli­ance re­quire­ments into a means of pro­tect­ing its strate­gic trade in­ter­ests. “The re­cent ZTE in­ci­dent also shows that in­tegrity and com­pli­ance op­er­a­tions are the life­lines of en­ter­prises, and Chi­nese com­pa­nies, whether they op­er­ate lo­cally or de­velop over­seas, should firmly stick to the prin­ci­ple of in­tegrity and com­pli­ance and con­stantly im­prove their com­pli­ance man­age­ment ca­pa­bil­i­ties,” he said. “We will strengthen the con­struc­tion our a com­pli­ance sys­tem, im­prove and im­ple­ment rules and reg­u­la­tions, con­sci­en­tiously ex­am­ine busi­ness risks, and im­ple­ment com­pe­ti­tion and op­er­a­tions on the premise of re­spect­ing in­terna- tional rules and the rel­e­vant na­tional laws and reg­u­la­tions,” Zhu Hon­gren sug­gested.

The in­au­gu­ral meet­ing brought to­gether rep­re­sen­ta­tives from cen­tral en­ter­prises, state-owned en­ter­prises, pri­vate en­ter­prises, and for­eign en­ter­prises in the field of com­pli­ance. These en­ter­prises all seemed to have the com­mon be­lieve that, at the na­tional level and at the gov­ern­men­tal level, the es­tab­lish­ment of the Na­tional En­ter­prise Com­pli­ance Com­mit­tee truly rep­re­sents a mile­stone in the con­struc­tion of com­pli­ance man­age­ment among Chi­nese en­ter­prises.

The Na­tional En­ter­prise Com­pli­ance Ini­tia­tive was also re­leased at the in­au­gu­ral meet­ing. “This is a very good ini­tia­tive. Com­pli­ance and ad­vo­cacy for pos­i­tive en­ergy are what we need, and from now on, we are go­ing to ac­com­plish this mis­sion to­gether, not just on our own. There­fore, we should also pro­mote in­ter­na­tional trade in gen­eral and ad­vo­cate the es­tab­lish­ment of a good im­age of Chi­nese en­ter­prises when we are pro­mot­ing the “Belt and Road” ini­tia­tive,” said Yu Mang, Deputy Gen­eral Man­ager of Le­gal Af­fairs of China Mo­bile Com­mu­ni­ca­tions Group Co., Ltd.

“As a rep­re­sen­ta­tive for pri­vate en­ter­prises, one of the most strik­ing feel­ings is that our com­pany is not alone,”

said Sun Hong, the Vice Pres­i­dent of Zhe­jiang Geely Hold­ing Group Co., Ltd. He also said that the cur­rent in­ter­na­tional sit­u­a­tion puts for­ward higher re­quire­ments for Chi­nese en­ter­prises’ com­pli­ance when go­ing global. “Es­pe­cially with re­gard to Sino-us trade fric­tions, the United States is also look­ing for var­i­ous ex­cuses to im­pose sanc­tions on Chi­nese en­ter­prises. Un­der such cir­cum­stances, we must im­pose strict de­mands for our­selves and put our best ef­fort into every­thing.”

Chal­lenges ahead dur­ing the com­pli­ance process

“In the process of go­ing global, some en­ter­prises face the prob­lem of non-stan­dard be­hav­ior, which has had a neg­a­tive im­pact on the pro­duc­tion and man­age­ment of en­ter­prises, and even on the im­age of our na­tion. Some en­ter­prises do not un­der­stand in­ter­na­tional rules and de­velop blindly without sci­en­tific rea­son­ing; oth­ers con­duct price-cut­ting com­pe­ti­tion; and oth­ers pur­sue achieve­ments re­gard­less of the cost, dam­age to the en­vi­ron­ment, se­cu­rity risks and so on.” Liu Min­qiang, the Coun­sel­lor of the De­part­ment of For­eign In­vest­ment and Eco­nomic Co­op­er­a­tion of the Min­istry of Com­merce, pointed out that en­ter­prises face a va­ri­ety of com­pli­ance chal­lenges dur­ing the process of “go­ing global”.

There­fore, de­ter­min­ing how to bal­ance busi­ness in­ter­ests and com­pli­ance de­vel­op­ment of Chi­nese en­ter­prises and to build cen­tury-old brands is both a new chal­lenge and a con­cern for en­ter­prises in the progress of de­vel­op­ment.

Zhang Yin­ping, Direc­tor of Ping An In­sur­ance’s Anti-money Laun­der­ing De­part­ment, pointed out that the rea­sons for vi­o­lat­ing the reg­u­la­tions can usu­ally be roughly clas­si­fied into three cat­e­gories: firstly, some com­pa­nies ne­glect the reg­u­la­tions, in­ad­ver­tently get out of line and are thus pun­ished; sec­ondly, de­lib­er­ate vi­o­la­tion of the rules; and fi­nally, be­ing will­ing to com­ply, but hav­ing no sound plan in place to achieve the de­sired ob­jec­tives.

Hu Qin, Vice Direc­tor of the Risk Man­age­ment De­part­ment (Le­gal Com­pli­ance De­part­ment) of China Mer­chants Group Co., Ltd., pointed out that the China Mer­chants Bu­reau has also en­coun­tered many prob­lems dur­ing the process of pro­mot­ing the con­struc­tion of a com­pli­ance man­age­ment sys­tem: for ex­am­ple, re­gard­ing the is­sue of ex­ter­nal de­sign stan­dards for com­pli­ance man­age­ment, how to or­gan­i­cally in­te­grate the con­struc­tion of a com­pli­ance man­age­ment sys­tem based on in­ter­na­tional stan­dards, na­tional stan­dards and stan­dards for cen­tral en­ter­prises, and re­gard­ing team con­struc­tion of com­pli­ance man­age­ment. There is a short­age of qual­i­fied per­son­nel in the com­pli­ance field at present, which has led to in­suf­fi­cient ex­pe­ri­ence when deal­ing with these prob­lems.

In the process of com­pli­ance, es­pe­cially in the face of the temp­ta­tion of in­ter­ests or the premise of in­dus­trial sur­vival, choos­ing whether to fol­low the path of com­pli­ance or whether to get the ben­e­fits to first sur­vive is of­ten the di­rect prob­lem faced in en­ter­prise op­er­a­tion.

Li Zhuy­ong, Le­gal Direc­tor of the Peo­ple’s In­sur­ance Com­pany of China Ltd., has con­sid­ered how to strengthen com­pli­ance from an­other per­spec­tive. “We found that in the course of co­op­er­a­tion with some en­ter­prises, vi­o­la­tions by up­stream and down­stream en­ter­prises can bring you a lot of risks. In the re­cent Face­book data scan­dal, Cam­bridge An­a­lyt­ica, the com­pany with which Face­book worked to­gether, ac­tu­ally re­moved data and used it.” He cau­tioned that com­pa­nies should pay greater at­ten­tion to part­ners or third party com­pli­ance and be more care­ful.

Guo Nan, who has worked on com­pli­ance for over 10 years, is the Asia-pa­cific Com­pli­ance Of­fi­cer of BP (China) In­vest­ment Co., Ltd. He ex­pressed that al­though there are many com­pli­ance cases that have prompted com­pa­nies to work more com­pre­hen­sively on com­pli­ance, it is ac­tu­ally a kind of man­age­ment phi­los­o­phy and sys­tem. A well-man­aged en­ter­prise is mostly re­flected in its in­ter­nal rules and reg­u­la­tions, which in­clude the pre­ven­tion of bribery, money laun­der­ing, data leaks, mo­nop­o­lies, and the process of fi­nan­cial ap­proval. Em­ploy­ees are re­quired to com­ply with the La­bor Law and en­vi­ron­men­tal re­quire­ments.

Guar­an­tee Com­pli­ance, Ben­e­fit En­ter­prise

Jiang Zeng­wei sug­gested that, “For fu­ture com­mit­tee work, we should ad­vo­cate the en­ter­prise com­pli­ance cul­ture, pro­mote the con­struc­tion of an en­ter­prise com­pli­ance man­age­ment sys­tem, strengthen the com­pli­ance reg­u­la­tions ac­cord­ing to the law, im­prove the le­gal ser­vices re­gard­ing en­ter­prise com­pli­ance, and ef­fec­tively guard against man­age­ment risks. We will also strengthen the train­ing for com­pli­ance per­son­nel in en­ter­prises and en­hance their abil­ity to guar­an­tee com­pli­ance. Be­sides this, we will re­in­force the study of in­ter­na­tional com­pli­ance rules and ex­changes with other coun­tries and in­ter­na­tional or­ga­ni­za­tions around the world.”

Many en­ter­prises have strength­ened the con­struc­tion of their com­pli­ance man­age­ment sys­tem for a long time. Wang Zhile, direc­tor of the Bei­jing New Cen­tury Academy on Transna­tional Cor­po­ra­tions, men­tioned that many com­pa­nies’ com­pli­ance was ini­tially put for­ward be­cause of the risks they faced. How­ever, in or­der to es­tab­lish a com­pli­ance sys­tem, they should not only be fo­cus­ing on avoid­ing risks, but also on form­ing a com­pli­ance cul­ture from the per­spec­tive of en­ter­prise val­ues, sus­tain­able en­ter­prise de­vel­op­ment and long-term profits.

Ac­cord­ing to Tian Peng, Chief Risk Of­fi­cer of China Na­tional Off­shore Oil Cor­po­ra­tion (CNOOC), CNOOC’S com­pli­ance sys­tem has been deep­en­ing year by year, espe-

Choos­ing whether to fol­low the path of com­pli­ance or whether to get the ben­e­fits to first sur­vive is of­ten the di­rect prob­lem faced in en­ter­prise op­er­a­tion.

cially in over­seas ar­eas. In 2014, the par­ent com­pany is­sued the Code of Con­duct for Over­seas In­sti­tu­tions and Per­son­nel, and is­sued the more de­tailed Guide­lines for Over­seas An­tiCor­rup­tion and Bribery Com­pli­ance Work in 2017. Based on cross-na­tional anal­y­sis, the com­pany car­ried out tar­geted re­search on the cor­re­spond­ing anti-cor­rup­tion laws and reg­u­la­tions and in­tro­duced in­struc­tions re­gard­ing over­seas com­pli­ance along with the forms and pro­ce­dures. In ad­di­tion, he be­lieves that an im­por­tant part of closed-loop man­age­ment is ac­count­abil­ity for com­pli­ance. Once vi­o­la­tions are de­tected, de­ter­min­ing how to con­duct ac­count­abil­ity for of­fi­cials and lead­ers, and how to im­ple­ment the Party-led group in­spec­tion work are the sit­u­a­tions faced by sta­te­owned en­ter­prises when mon­i­tor­ing the for­ma­tion of a closed-loop sys­tem.

It is be­cause their com­pli­ance work is solid, says Mr. Sun, that they have gained con­sid­er­able profits from it. “Within a year, we have suc­ces­sively com­pleted six ma­jor ac­qui­si­tions, and com­pli­ance con­trib­uted to our progress on these projects.” He says that com­pli­ance has to be car­ried out in a downto-earth man­ner in or­der to en­sure that ev­ery project will be sound.

Liu Jian men­tions that, with the de­vel­op­ment of com­pli­ance, new is­sues are con­stantly emerg­ing. At the end of 2017, Daim­ler put in place dig­i­tal risk com­pli­ance of­fi­cers, who were tasked with re­spond­ing to in­creas­ingly press­ing data pro­tec­tion re­quire­ments and deal­ing with le­gal reg­u­la­tory re­quire­ments re­gard­ing cy­ber­se­cu­rity. As for some ques­tions about gift-ac­cept­ing, they in­tro­duced the two top ver­sions of China’s com­pli­ance prac­tices, pro­vid­ing em­ploy­ees with self-as­sess­ment ques­tion­naires. This has sig­nif­i­cantly re­duced the need for low-risk com­pli­ance con­sul­ta­tion.

The 15t h Bei­jing In­ter­na­tional Au­to­mo­bile Ex­hi­bi­tion (Auto China 2018) suc­cess­fully drew to a close at the China In­ter­na­tional Ex­hi­bi­tion Cen­ter in Bei­jing on May 4, 2018. As one of the most im­por­tant events in the in­ter­na­tional au­to­mo­bile in­dus­try, the ex­hi­bi­tion at­tracted ex­ten­sive at­ten­tion from con­sumers and also in­cluded par­tic­i­pa­tion by both do­mes­tic and for­eign -play­ers in the au­to­mo­bile in­dus­try.

Auto China 2018 at­tracted the par­tic­i­pa­tion of more than 1,200 ex­hibitors from 14 coun­tries and re­gions. Ap­prox­i­mately 1,022 ve­hi­cles were dis­played at the venue, with 105 of them mak­ing their world de­but dur­ing the ex­hi­bi­tion. Multi­na­tional Au­to­mo­bile Com­pa­nies con­trib­uted 46 of these just-launched ve­hi­cles, with 16 of them mak­ing their in­ter­na­tional de­but and 30 of them mak­ing their Asian de­but. There were also 64 con­cept ve­hi­cles and 174 new en­ergy ve­hi­cles show­cased at the event, with Chi­nese au­to­mo­bile com­pa­nies con­tribut­ing 124 of these new en­ergy ve­hi­cles. An au­di­ence of ap­prox­i­mately 820,000 at­tended the event.

The above fig­ures pro­vide a gen­eral pic­ture of this ex­hi­bi­tion, and also in­di­cate the ro­bust growth of the global and Chi­nese au­to­mo­bile mar­ket. The de­vel­op­ment of Chi­nese new en­ergy ve­hi­cles be­came a high­light of this event and also the whole au­to­mo­bile in­dus­try.

Ris­ing pop­u­lar­ity of new en­ergy ve­hi­cles

Auto China 2018 con­tin­ued the ex­cited fever of Auto China 2017, with the num­ber of dis­played new en­ergy ve­hi­cles and do­mes­tic man­u­fac­tur­ers ris­ing. Both tra­di­tional au­to­mo­bile man­u­fac­tur­ers and new play­ers in the in­dus­try have con­sol­i­dated their pres­ence in the area of new en­ergy ve­hi­cles. Some do­mes­tic com­pa­nies launched their new en­ergy ve­hi­cles at the ex­hi­bi­tion, in­clud­ing BYD’S Yuan EV360, Bei­jing Auto’s ET400, Dongfeng’s Feng­guang 580 and Li­fan’s 650EV.

The Jianghuai IEVA50, one of the most im­por­tant high­lights of this ex­hi­bi­tion, fea­tures an en­durance mileage of 500 miles, which marks a new chap­ter in Chi­nese new en­ergy ve­hi­cle de­vel­op­ment.

BYD’S Song MAX PHEV ( Plug- in Hy­brid Elec­tric Ver­sion) was also show­cased dur­ing the ex­hi­bi­tion. The au­to­mo­bile’s

ap­pear­ance and in­te­rior have been up­graded from the last ver­sion, and the new ve­hi­cle is pow­ered by a 1.5T turbo-su­per­charged engine.

Great Wall Mo­tor launched its own new en­ergy ve­hi­cle brand GWKULLA. The GWKULLA R1 is an elec­tric-pow­ered mini ve­hi­cle that fea­tures a com­bi­na­tion of blue and white col­ors. This ve­hi­cle adopts the ME plat­form, a pro­fes­sional elec­tric ve­hi­cle plat­form that fea­tures a highly in­te­grated elec­tric drive sys­tem. The sys­tem’s power den­sity reaches 160Wh/ kg, and its sys­tem ef­fi­ciency is 97%, mean­ing that each kwh is able to sup­port a 10mile drive.

NIO also launched its ES8 6-seated model at the ex­hi­bi­tion. Ac­cord­ing to their pre­vi­ous plans, it’s the NIO ES8 was orig­i­nally slated to be un­veiled dur­ing the first half of this year. This model fea­tures a 70kwh three-el­e­ment lithium bat­tery. It takes only 1 hour to charge the ve­hi­cle from 0 to 80% bat­tery ca­pac­ity by ap­ply­ing the quick charge tech­nol­ogy. The new ve­hi­cle has an en­durance mileage of 355 miles and can even achieve 500 miles when stay­ing un­der the speed of 60km/h.

Multi­na­tional man­u­fac­tur­ers fur­ther tap Chi­nese mar­ket

The wide par­tic­i­pa­tion of multi­na­tional au­to­mo­bile man­u­fac­tur­ers in the ex­hi­bi­tion in­di­cates their deep en­thu­si­asm to­wards the Chi­nese mar­ket.

Ru­pert Stadler, the CEO of Audi, said that Audi is plan­ning to work with FAW Group to dou­ble their pro­duc­tions. He said that Audi will pro­mote 10 new SUV mod­els be­fore 2022 and that the share of elec­tric ve­hi­cles in its sales in the Chi­nese mar­ket will reach 30% by 2025.

Stadler said that Audi will ex­pand its co­op­er­a­tion with SAIC Mo­tor and dou­ble the em­ploy­ment of en­gi­neers in China to 750-800. How­ever, he did not in­di­cate a time sched­ule for this.

BMW CEO Har­ald Kruger said that BMW is look­ing to es­tab­lish a co­op­er­a­tion re­la­tion­ship with Bril­liance Auto and is open about the share ra­tio of the joint ven­ture. Kruger said that he pre­ferred a 50-50% share­hold­ing struc­ture for the joint ven­ture.

It is also re­ported that BMW is plan­ning to es­tab­lish a joint ven­ture with Great Wall Mo­tor to de­velop the BMW Mini brand in China.

Peter Fleet, Pres­i­dent of the Ford Mo­tor Com­pany, Asia Pa­cific, said that he hopes China will fur­ther loosen the limit on the share­hold­ing pro­por­tion for for­eign com­pa­nies in China’s au­to­mo­bile sec­tor, and ac­cel­er­ate the ap­proval pro­ce­dure for the es­tab­lish­ment of a joint ven­ture re­gard­ing elec­tric ve­hi­cles be­tween Ford and Zo­tye Mo­tor.

The Tesla MODEL 3 was first launched for the Chi­nese mar­ket at the Bei­jing au­to­mo­bile ex­hi­bi­tion and at­tracted a lot of at­ten­tion from the pub­lic. The MODEL 3 is sched­uled to be de­liv­ered to Chi­nese cus­tomers in 2019.

The re­cently-held Boao Fo­rum for Asia gave the sig­nal that China will re­move the hur­dles for mar­ket en­try and ease up on the limit on the share­hold­ing pro­por­tion for for­eign com­pa­nies in the au­to­mo­bile sec­tor. China will also ex­pand im­ports and lower im­port tar­iffs for ve­hi­cles in 2018.

On April 17, the Na­tional De­vel­op­ment and Re­form Com­mis­sion said, when an­swer­ing ques­tions from the press about the neg­a­tive list of for­eign in­vestors and the open­ing-up of the man­u­fac­tur­ing sec­tor, that the au­to­mo­bile in­dus­try will grad­u­ally open up. The limit on the share­hold­ing pro­por­tion for spe­cial ve­hi­cle and new en­ergy ve­hi­cle com­pa­nies by for­eign cap­i­tal will be re­moved in 2018; the limit on the share­hold­ing pro­por­tion for com­mer­cial ve­hi­cle com­pa­nies by for­eign cap­i­tal will be re­moved in 2020; the limit on the share­hold­ing pro­por­tion for pas­sen­ger ve­hi­cles by for­eign cap­i­tal will be re­moved and the es­tab­lish­ment of more than two joint ven­tures will also be per­mit­ted. Af­ter an in­terim pe­riod of 5 years, the au­to­mo­bile in­dus­try will re­move all lim­its.

China will al­low the es­tab­lish­ment of au­to­mo­bile com­pa­nies wholly con­trolled by for­eign cap­i­tal be­fore 2022, in or­der to open

up the world’s largest au­to­mo­bile mar­ket. This plan will change the re­quire­ments for joint ven­tures be­tween multi­na­tional cor­po­ra­tion and do­mes­tic part­ners.

It is known that Nis­san Group and DFAC have es­tab­lished a joint ven­ture. If the share­hold­ing pro­por­tion is raised above 50%, this ven­ture will gain a lead­ing po­si­tion in new ve­hi­cle de­vel­op­ment and ad­just­ment of the pro­duc­tion mech­a­nism. How­ever, Nis­san Group said that it will not raise the share­hold­ing pro­por­tion im­me­di­ately as this would harm their cur­rent work­ing re­la­tion­ship.

Ford Group has also cho­sen Chongqing as the place to de­velop its new gen­er­a­tion of Fo­cus mod­els. The Ford strat­egy is to give pri­or­ity to China and then to the rest of the world. It shows that Ford is fo­cus­ing on the Chi­nese mar­ket, whilst also show­ing that Ford Group will be with­draw­ing from the U.S. mar­ket.

Over the course of the rest of 2018, many multi­na­tional au­to­mo­bile com­pa­nies are striv­ing for co­op­er­a­tion with do­mes­tic au­to­mo­bile man­u­fac­tur­ers, in­di­cat­ing their fo­cus on and en­thu­si­asm for the Chi­nese mar­ket. Chi­nese lo­cal au­to­mo­bile com­pa­nies will also be faced with more fierce mar­ket chal­lenges.

Chi­nese au­to­mo­bile in­dus­try un­der re­form

Pres­i­dent of Chang’an Group, Zhu Huarong, said, at the China Auto 2018 sum­mit, that the Chi­nese au­to­mo­bile in­dus­try is un­der­go­ing a num­ber of great re­forms in­clud­ing those re­lated to AI in­tel­li­gence, new en­ergy and new com­pe­ti­tion. It is true that the in­dus­try is fac­ing a lot of changes, and also fierce com­pe­ti­tion.

In­sid­ers in the in­dus­try point out that the au­to­mo­bile in­dus­try is fac­ing four de­vel­op­ment trends, in­clud­ing elec­tric ve­hi­cles, smart driv­ing, e-com­merce and the shar­ing econ­omy. These four trends cover the sup­ply and de­mand side of the in­dus­try. Elec­tric ve­hi­cles and smart in­ter-con­nec­tiv­ity will up­grade the sup­ply side, while e-com­merce and the shar­ing econ­omy will fur­ther pro­mote de­vel­op­ment on the de­mand side.

From the tech­no­log­i­cal per­spec­tive, ve­hi­cle in­tel­li­gence, un­manned driv­ing and the In­ter­net of Ve­hi­cles are three im­por­tant de­vel­op­ment trends.

Ve­hi­cle in­tel­li­gence. Ve­hi­cle in­tel­li­gence is dis­played in two as­pects: the first is the ap­pli­ca­tion of au­to­matic elec­tri­cal de­vices to re­place me­chan­i­cal op­er­a­tions, in or­der to bet­ter con­trol ve­hi­cles and make the driv­ing ex­pe­ri­ence safe and ef­fi­cient. The se­cond is the in­te­gra­tion of in­for­ma­tion and en­ter­tain­ment into the ve­hi­cle to cre­ate a more re­lax­ing en­vi­ron­ment for driv­ers. This is also called In­fo­tain­ment.

Li Weili, Deputy Direc­tor of the In­for­ma­tion Data Man­age­ment De­part­ment of the Na­tional In­for­ma­tion Cen­ter, said that in the long run, ve­hi­cle in­tel­li­gence will im­prove driv­ing safety. Once an in­tel­li­gent trans­porta­tion sys­tem and a plat­form are es­tab­lished, driv­ers will be able to ac­quire a clear pic­ture of the road sur­round­ings and con­di­tions in a timely man­ner, and will be able to take pre­ven­tive mea­sures to avoid ac­ci­dents. Mean­while, the smart trans­porta­tion sys­tem will help driv­ers plot the best driv­ing routes to al­le­vi­ate traf­fic con­ges­tion.

Un­manned driv­ing as a key re­form. It is re­ported that Hangzhou will hold a test ex­per­i­ment of un­manned driv­ing on real roads over a 1.6-mile dis­tance ad­ja­cent to the head­quar­ters of Alibaba Group. This shows that Hangzhou will be an­other big city em­brac­ing un­manned driv­ing, fol­low­ing in the foot­steps of Bei­jing, Shen­zhen and Shang­hai.

The most strik­ing news about un­manned driv­ing is Baidu Chair­man & CEO Robin Li’s drive along the 5th Ring Road last year. The un­manned driv­ing tech­nol­ogy has con­tin­ued to make fur­ther progress in 2018. On New

When it comes to 2018, many multi­na­tional au­to­mo­bile com­pa­nies are seek­ing co­op­er­a­tion with do­mes­tic au­to­mo­bile man­u­fac­tur­ers, in­di­cat­ing their fo­cus on and en­thu­si­asm about the Chi­nese mar­ket.

Year’s Eve, Baidu Apollo un­manned ve­hi­cles be­came the first fleet of ve­hi­cles to travel on the Hongkong-zhuhai-ma­cau Bridge.

This rise in new tech­nol­ogy also means con­flicts with old tra­di­tions and par­a­digms. Ques­tions about un­manned driv­ing will al­ways ex­ist. The ma­jor doubt fo­cuses on the driv­ing safety. Al­though manned driv­ing in­volves a lot of risks, in­clud­ing op­er­a­tional mis­takes, driv­ing when tired, sud­den ill­ness and drunk driv­ing, it will take a pe­riod of time for the pub­lic to ac­cept au­to­mat­i­cally-driven ve­hi­cles, as the losses will be in­cal­cu­la­ble if the driv­ing sys­tem loses con­trol.

How­ever, it is un­ques­tion­able that un­manned driv­ing rep­re­sents the fu­ture trend of au­to­mo­bile tech­nolo­gies. Time is still needed to im­prove such tech­nolo­gies.

In­ter­net of Ve­hi­cles Pro­vides Plat­form for Com­mu­ni­ca­tion. The In­ter­net of Ve­hi­cles is the col­lec­tion and ap­pli­ca­tion of static and dy­namic in­for­ma­tion about ve­hi­cles through elec­tronic tags and data col­lec­tors in­stalled in the ve­hi­cle, so as to mon­i­tor ve­hi­cle driv­ing con­di­tions and pro­vide com­pre­hen­sive ser­vices.

How can the In­ter­net of Ve­hi­cles be de­scribed? Peo­ple from Fo­ton Mo­tor ex­plained that in the near fu­ture, au­to­matic driv­ing and com­mu­ni­ca­tions among dif­fer­ent ve­hi­cles will be­come pos­si­ble. In the city, ve­hi­cles will be able to move through roads and al­leys un­der the com­mand of an in­tel­li­gent trans­porta­tion sys­tem. Even blind peo­ple will be able to drive ve­hi­cles. New en­ergy sta­tions are lo­cated ev­ery­where across the city, ready to charge ve­hi­cles. The smart driv­ing sys­tem will largely in­crease the driv­ing ef­fi­ciency, and make zero ac­ci­dents an achiev­able goal.

In­sid­ers in the au­to­mo­bile in­dus­try have said that the In­ter­net of Ve­hi­cles is not just about con­nect­ing your cell­phone or tablet to the ve­hi­cle, or pro­ject­ing a mo­bile app onto the screen of the ve­hi­cle. From the point of view of fac­tory in­stall­ment, the In­ter­net of Ve­hi­cles refers to the ve­hi­cle and net­work. The In­ter­net of Ve­hi­cles is a lo­cal area net­work which rep­re­sents a close tech­nol­ogy sys­tem.

Dis­cus­sions have re­cently been fo­cused not only on tra­di­tional in­for­ma­tion tech­nol­ogy, such as sen­sor tech­nol­ogy, com­puter tech­nol­ogy and telecom­mu­ni­ca­tions tech­nol­ogy, but also on In­ter­net of Things, big data, and cloud com­put­ing. Tra­di­tional in­dus­try play­ers in­clud­ing VW, Volvo, Cadil­lac and Toy­ota have re­cently been dis­cussing these con­cepts, and some net­work com­pa­nies such as Google, Baidu, Alibaba and Ten­cent have joined the dis­cus­sion. The two sides are mov­ing closer to each other in the con­text of in­dus­try re­form and in­no­va­tion.

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