Chinese authorities have suspended the issuance of new licenses for autonomous vehicles across the country, according to a Bloomberg report citing unnamed people familiar with the matter. The freeze follows an incident in Wuhan last month where dozens of Baidu-operated Apollo Go robotaxis ground to a halt in traffic, causing widespread chaos.
The regulatory restrictions will prevent companies from adding new driverless cars to their fleets, expanding into new cities, or launching new test projects. It remains unclear when officials will resume issuing new licenses.
Bloomberg reported that the Wuhan incident alarmed officials in Beijing, prompting regulators to urge local governments to review the sector to prevent similar episodes. This marks at least the second time regulators have intervened following a Baidu-related incident. Currently, Baidu’s operations in Wuhan remain on pause while local authorities investigate the matter.
While autonomous vehicle regulators tighten oversight, major Chinese technology firms are simultaneously reducing their human workforces. Annual reports filed at the end of March reveal significant headcount reductions at several industry leaders.
Alibaba reduced its workforce by 34% in 2025 as the company continues to axe its offline business units. The e-commerce giant, which operates platforms including AliExpress, Taobao, and Tmall, is pivoting its focus toward artificial intelligence and cloud infrastructure.
Baidu, the operator of the disrupted Apollo Go fleet and the country's largest search engine, ended 2025 with nearly 7% fewer employees. Electric-vehicle manufacturer BYD also reported a workforce reduction of approximately 10% in its recent annual filings.
While these job cuts are often framed as part of an AI-driven transformation, Chinese experts point to broader economic pressures as the primary driver. These include a slowing economy, weak consumer demand, and a prolonged property crisis.
Sun Zhongwei, a public administration professor at South China Normal University, told Rest of World that the changes reflect a correction after years of rapid hiring. "Many of these companies expanded rapidly during the internet boom, hiring at an exponential pace," Sun said.
Sun noted that the organizational changes are more about adjusting to a downturn following that period of growth than about AI displacing jobs. A former Baidu marketing employee, speaking to Rest of World on condition of anonymity, confirmed that the company has been cutting staff in non-core departments for at least a year.
"Since last year, the company has been cutting people in so-called non-core departments. I saw it coming," the former employee said.
Neither Alibaba, Tencent, nor BYD responded to requests for comment regarding their recent workforce changes, according to Rest of World.
