After being blocked en masse from the US market due to national-security concerns, Chinese self-driving technology companies are accelerating their expansion into Europe. Companies such as QCraft, Momenta, DeepRoute.ai, WeRide, Baidu, and Pony.ai are establishing European headquarters, signing data-sharing deals, and testing advanced driver-assistance systems (ADAS) across the continent.
Modern Diplomacy reports that in China the world’s largest car market over half of all vehicles now include some form of autonomous-driving technology, spurred by Beijing’s drive to dominate global autonomous-vehicle (AV) development. With a saturated domestic market and U.S. access restricted, Europe has become the next strategic frontier, offering a relatively open regulatory environment and strong auto manufacturing base.
Europe is fast emerging as the new battleground for global self-driving technology. The arrival of Chinese AV firms could reshape the European auto and technology sectors, much like the earlier influx of Chinese electric-vehicle (EV) makers.
For China, the move reflects both a search for profit beyond its overcrowded home market and a geopolitical strategy to establish leadership in next-generation mobility.
For Europe, this presents both opportunity and risk: potential investment, innovation, and industrial collaboration but also competition, data-security concerns, and dependency on Chinese technology.
European regulators are being forced to act quickly. EU Commission President Ursula von der Leyen has called for a continent-wide strategy for self-driving cars to keep pace with China and the U.S., where such technologies are already advancing rapidly.
QCraft is opening a German HQ and plans to sell driver-assistance systems in Europe within two years. Momenta, which partners with Toyota, General Motors, and Mercedes-Benz – is set to test Level-4 tech with Uber in Munich next year.
DeepRoute.ai aims to establish a European data centre once partnerships are finalized. WeRide, Baidu, and Pony.ai are also expanding their European footprint.
Chinese firms will increase testing and partnerships in Germany, France, and the U.K., focusing on Level-3 and Level-4 autonomy trials. Regulatory gaps and fragmented EU policies will remain a challenge but won’t deter rapid growth. If European regulators harmonize rules and ensure data protection, collaboration between Chinese developers and European automakers could drive innovation and accelerate adoption. A protectionist turn, however, could slow progress and spark trade tensions.
China could also solidify its dominance in global autonomous-vehicle technology, with Europe becoming both a manufacturing hub and a key consumer market. European firms will either collaborate or compete head-to-head, depending on how quickly the EU develops its own AV ecosystem.
(Pic: Momenta)
