Core Viewpoint - The Chinese smart electric vehicle industry is moving towards a future that prioritizes human-centered design and safety, necessitating stronger regulatory measures to address safety concerns arising from rapid technological advancements [1][8]. Regulatory Developments - The National Standardization Administration has initiated a draft for the "Technical Conditions for Motor Vehicle Operation Safety," which sets minimum safety, environmental, and performance standards for all vehicles on Chinese roads [2][5]. - The last revision of this standard was in 2017, and significant changes in the automotive industry, particularly the rise of new energy vehicles (NEVs) from a penetration rate of 2.7% to over 50%, have prompted this update [2][5]. Safety Concerns - Recent incidents involving electric vehicles, such as battery fires, autonomous driving failures, and difficulties in emergency exits, highlight critical safety issues that need to be addressed [3][4]. - The complexity of responsibility attribution in accidents involving smart driving systems complicates consumer protection, as data is often controlled by manufacturers, making it difficult for consumers to assert their rights [3][4]. Industry Challenges - Some manufacturers prioritize high energy density and low costs in battery design, potentially compromising safety [3]. - The entry of internet companies into automotive manufacturing has led to a focus on marketing over rigorous safety standards, creating a "gray area" where companies can exploit regulatory loopholes [4][5]. Upcoming Standards - The automotive industry is undergoing a comprehensive upgrade of mandatory national standards, with several key safety performance requirements being elevated to mandatory status [6][7]. - New standards include the "Safety Requirements for Power Batteries for Electric Vehicles," which mandates that batteries must not catch fire or explode, and specific regulations for hidden door handles to ensure safety during emergencies [7]. Market Implications - The shift towards stringent regulations is expected to compel companies to redirect resources from flashy marketing to solid technical research and safety validation [8]. - As regulations clarify the boundaries for all players, competition in the market is anticipated to shift from quantity to quality and safety, marking a significant transition for the industry [8].