China expects smart cars with partial or fully autonomous functions to account for 50% of new vehicles sold in the country by 2020 — one of the most ambitious plans worldwide to push forward self-driving technologies. The blueprint, released by the National Development and Reform Commission (NDRC), is part of the country’s efforts to become a global power in smart car development and production by 2035. In order to perfect the legal system for self-driving technologies, the government will speed up the drafting of regulations for public road tests of autonomous driving and revise the current road safety regulations “when conditions are mature”, according to the plan.

The NDRC also expects China to basically finish a framework of smart car standards – ranging from technological innovation and infrastructure to legislation, production supervision and information safety – by 2020. “Developing such cars is of great significance, which would create new economic growth points, alleviate traffic-related problems and enhance China’s competitive edge,” said the Commission. Private capital is invited to join the efforts. The NDRC also suggests favorable tax and other financial policies for small and medium-sized companies and startups in smart cars and encourages international cooperation to introduce advanced technologies. The NDRC also called on Chinese companies to expand their global presence through mergers and joint ventures.

Several global car manufacturers are already cooperating with Chinese companies and organizations in the development of self-driving cars. General Motors Co has demonstrated a vehicle-to-infrastructure communication application on public roads based on a standard it developed with Tsinghua University and China’s Changan Automobile. Baidu’s self-driving program, Apollo, has attracted a large number of Chinese and international partners, including Ford Motor and Daimler. A total of 21 Chinese companies are planning a CNY1 billion joint venture that will specialize in research and development of such cars. Among investors are FAW Group Corp, Dongfeng Motor Corp, China Mobile, China Unicom and Didi Chuxing’s parent company, Beijing Xiaoju Technology, the China Daily reports.

In actual numbers of electric cars sold, China is the clear leader, with more than half the world market of about 1 million cars and light trucks. Chinese companies are preparing to export electric cars to the U.S. and Europe and to build car plants in Western markets. Moreover, Chinese capital is behind niche electric carmakers in the U.S., including Lucid Motors, Faraday Future and SF Motors, all based in California.