Industry Standard: China Approves Steer-by-Wire

Steering Systems Industry Standard: China Approves Steer-by-Wire

2025-12-09 From Henrik Bork | Translated by AI 4 min Reading Time

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From July 2026, China will allow electronic steering systems without mechanical backup. The new standard is considered a breakthrough for autonomous driving – and a multi-billion market for ZF and Bosch.

Allowed in China from July 2026: Steer-by-wire steering systems without a mechanical connection between the steering wheel and steering gear.(Image: ZF) — Allowed in China from July 2026: Steer-by-wire steering systems without a mechanical connection between the steering wheel and steering gear.
(Image: ZF)

China has legally regulated digital steering. A new industry standard for steer-by-wire systems (SBW) has been published, which will officially come into force on July 1, 2026. The steering column and any mechanical connection between the steering wheel and tires will only be an option in the People's Republic from this date, no longer a mandatory requirement.

This gives the new technology, in which ZF from Friedrichshafen and other pioneers have already invested substantial funds in their Chinese plants, a sort of quality seal from Beijing and a significant commercial boost.

The electric vehicle Nio "ET9," featuring a steer-by-wire (SBW) system from ZF, is already being produced in series in the People's Republic and has been on the market since this year. A generous interpretation of older standards and a special government approval made this possible. Now, it is expected that the standardization will accelerate the introduction of additional vehicle models with SBW in the world's largest automotive market.

From Joystick to Retractable Steering

This technology allows electronic control impulses and actuators to take over the work. Chips, software, and a few cables replace everything that is currently still typically done by complex mechanical steering columns with electronic assistance. The steering wheel then operates similarly to a joystick and can later be completely folded away or retracted into the cockpit when the vehicle is fully autonomous.

On December 3, the Standardization Administration of the People’s Republic of China (SAC), the central standardization authority in Beijing, published the industrial standard GB17675-2025 titled “Automotive Steering Systems – Basic Requirements.” This now officially allows OEMs to develop electronic steering systems where mechanical components are not even required as a "backup" for system failures. Dual systems combining electronics and mechanics remain permitted but are no longer mandatory.

The Chinese standard defines the functional safety of steer-by-wire (SBW) systems considering the latest advancements in other international standards such as UN R79 and ISO 26262, particularly regarding system redundancy to mitigate risks associated with power failure and signal transmission errors.

Electronic Instead of Mechanical Fail-Safe

The steering systems must operate reliably even under extreme temperatures, strong vibrations, and disturbances from electromagnetic waves. Manufacturers are required to document and obtain approval for their safety measures, such as technical redundancy through dual ECUs, dual sensors, or dual power supplies. The authority conducts random inspections.

"These requirements represent a transition from mechanical fail-safe to electronic fail-safe and compel manufacturers to develop highly reliable systems," states the Chinese automotive portal Wangtongshe.

Despite some drivers' concerns about removing any mechanical connection between the steering wheel and the wheels, the rise of steer-by-wire (SBW) systems is considered unstoppable among experts in China.

This is largely because SBW is a key technology for software-defined vehicles, making truly autonomous driving and advanced driver-assistance systems possible.

As automated driving at Level 2 and above increasingly replaces the driver with onboard computers and AI, chips and algorithms must be able to quickly access the steering and braking systems. Developers argue that this can be achieved much better and safer with purely electric and electronic architectures.

Tesla as a Pioneer, China as a Mass Market

Tesla was the first automaker to launch a production model with steer-by-wire (SBW) in December 2023 with its Cybertruck. However, the massive scaling of electromobility and automated driving functions in China is now creating the foundation for the definitive and likely global rise of steering without a steering column. SBW is expected to gradually spread from expensive luxury cars like the ET9 to more affordable segments of the Chinese automotive market as component prices decrease due to mass production.

Consequently, a new billion-dollar market for SBW is emerging in China, which is likely to provide significant earnings for the two German suppliers Bosch and ZF. ZF, based in Friedrichshafen, is considered a pioneer in this area and has collaborated with the start-up Nio to bring "the first series-produced model with full SBW technology without mechanical backup for the Chinese mass market" to the road in its electric vehicle ET9.

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Date: 08.12.2025

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Besides ZF, it is one of the few manufacturers in the People's Republic that has the potential for comprehensive "X-by-Wire" expertise, meaning an integrated chassis with electronic control of "X" or "everything": from steering to brakes to shock absorbers.

"Today, we are already delivering customers the steering of the future. With our production-ready steer-by-wire steering system, we are ushering in the era of the software-defined vehicle," said Peter Holdmann, a board member responsible for "Chassis Solutions" at ZF, during the presentation of the Nio model featuring ZF steering in the spring.

Bosch has developed a BHSS through its joint venture "Bosch Huayu" in China, which is currently being produced in initial series. Additionally, Chinese manufacturers Nexteer, Yubei Steering, and Huawei are also working on SBW products. Smaller Chinese competitors are likewise showing ambitions.

Billion-Dollar Market with 67 Percent CAGR Growth

Currently, electronic power steering (EPS) clearly dominates the Chinese automotive market. However, this may not be the case for much longer. The rapid acceptance of highly automated driving and robotaxis, along with the recent standardization, is likely to lead to significant market gains for steer-by-wire (SBW) systems.

The market penetration of steer-by-wire in China is expected to grow from about two percent in 2025 to "30 percent by 2030," predicts the Chinese trade publication for autonomous driving, Zhineng Qiche Sheji.

For this to happen, the Chinese SBW market would need to grow from 2.3 billion yuan to approximately 30 billion yuan (around €3.6/$4.1 billion), which corresponds to an average growth rate of 67 percent per year (CAGR).

The exact figures remain to be seen, but the general direction appears to be correct. This wouldn't be the first boom of a new technology transforming the automotive industry from China. However, it could be the first in a long time where German pioneers are involved from the outset.