A Baidu driverless car in Beijing File photo: CFP

Chinese Internet giant Baidu Inc announced on Monday it will build a zone to test autonomous-driving vehicles in Wuhu, East China's Anhui Province, according to a report by news portal tech.qq.com on Monday.

Baidu has signed an agreement to build the zone with the Wuhu Municipal People's Government in Beijing on Monday, said the report.

"Autonomous driving is the future," said the report, citing Wang Jin, senior vice president of Baidu, also the general manager of the autonomous-driving vehicles department of the company. "This technology can save 500 lives a day in China and 3,000 a day worldwide."

However, it's very hard to complete all the tests and research in the laboratories, so tests on actual roads are needed, said Baidu.

Wuhu offers good conditions for this process, from research and development to testing, pilot operation and promotion, according to the report from tech.qq.com, which cited Mayor Pan Zhaohui.

Wuhu can set an example as a smart city for the development of these vehicles, said Pan.

In December 2015, Baidu said its autonomous-driving vehicle was the first in China to complete a rigorous road test.

Many domestic automakers including Changan Automobile (Group) Co and BAIC Motor plan to launch similar vehicles soon.

Many automakers and Internet companies have realized the importance of developing this technology.

Baidu said in March that it has invested "tens of billions of yuan" in the sector.

In July 2015, the country unveiled its "Internet Plus" initiative to integrate the Internet with traditional industries and boost economic growth. The plan maps development targets and support measures for key sectors including artificial intelligence.

Global Times