In the digital age, autonomous driving, as an innovative development, is rapidly changing the perception of transportation and travel. The most important feature of autonomous driving is the dominance of artificial intelligence technology, and the driving process is system engineering, in which the machine continuously collects traffic information, analyzes the information and self-learns to achieve autonomous driving. In China, with the continuous progress of domestic technology and the development of commercial applications, autonomous driving technology is gradually entering daily life. Many Chinese automobile companies such as Great Wall, Changan and Xiaopeng have launched unmanned models, and other automobile companies have also started to launch autopilot cabs. The combination of technologies such as artificial intelligence, big data, and the Internet of Things (IoT) with the automotive industry has greatly contributed to the growing importance of artificial intelligence and the adoption of internet technology in China’s automotive industry. It should be noted that the autonomous driving technology itself is still in the development and improvement stage, so its management is also quite complex. All this creates a number of challenges for legislation in this area. The application of these technologies not only changes the traditional automotive market and industry, but also has an unprecedented impact on the current legal regulations in China. The current legal system in China faces challenges on key issues such as determining liability for road accidents and protecting data security. This article analyzes in detail a series of policies to support the development of the autopilot car industry in China. The major legislative challenges of autonomous driving are revealed and solutions are suggested. With the rapid development of the autonomous driving industry, only the accelerated establishment of an effective regulatory framework for autonomous driving safety adapted to future development can promote innovation and accelerate the realization of the plan to integrate autopilot vehicles into the human society of the digital age.