China Sets Global Standard: Steer-by-Wire Unlocked, Forcing Chassis Convergence

Is the steering wheel in your next high-tech EV about to become purely optional? For Western investors and automotive strategists, the answer is increasingly yes, thanks to a monumental shift occurring in Chinese regulatory circles. On December 2, 2025, China released the mandatory national standard GB17675-2025, set to replace the 2021 version on July 1, 2026. The single most significant change is the explicit inclusion of Steer-by-Wire (SbW) technology and, crucially, the removal of the archaic mandate that required a mechanical connection between the steering wheel and the road wheels. This isn’t just a domestic tweak; it’s a regulatory coup that signals China is now co-authoring the rulebook for next-generation automotive architecture, placing the focus keyword Steer-by-Wire at the center of the EV evolution.

The End of Mechanical Linkage: Why This Standard Matters to the West

For decades, the steering column was non-negotiable for functional safety. Now, with China’s new standard, full electronic decoupling is allowed, provided the system meets stringent functional safety, redundancy, and fail-safe design requirements. This institutional green light for Steer-by-Wire unlocks massive potential for software-defined vehicles and advanced autonomous driving capabilities.

The Key Implications for Global OEMs:

• Regulatory Parity: The standard was drafted with input from major global and domestic players, including Toyota and Mercedes-Benz, suggesting this is the shared next-generation direction. Western companies can now aim for a unified global platform certification pathway.
• Technological Leap: SbW allows for customizable steering feedback, variable steering ratios, and, critically, the removal of the steering column, freeing up crucial cabin space. NIO’s ET9, for example, is the first mass-produced model in China utilizing a *full* SbW configuration without a mechanical backup.
• Safety Redefined: The standard enforces compliance with high functional safety levels (like ISO 26262) and mandates specific fallback strategies for power loss or control transmission faults, addressing previous industry hesitation.

From ‘Big Three’ to ‘Three Axes’: The Chassis Convergence Revolution

This pivot to Steer-by-Wire is merely the most visible part of a much broader, systemic overhaul of vehicle control known as ‘Three-Axis Integration’ or ‘Chassis Convergence.’ In the legacy ICE era, we talked about the ‘Big Three’ (Engine, Transmission, Chassis). For intelligent EVs, the focus has shifted to the ‘Three Axes’ of chassis control, which must now fully integrate:

The XYZ Chassis Axis Breakdown:

The goal is to move from independently controlled components to a unified, high-speed, low-latency software platform managing all motion, moving the industry towards the ‘Intelligent Chassis 3.0’ era post-2026.

• X-Axis (Longitudinal): Governs speed—handling drive torque control, regenerative braking, and friction braking (Brake-by-Wire).
• Y-Axis (Lateral): Governs direction—now encompassing SbW, four-wheel steering, and rear-wheel steering. The new standard solidifies the ‘by-wire’ future for this axis.
• Z-Axis (Vertical): Governs stability and comfort—evolving from passive systems to Electronically Controlled Dampers (CDC), air suspension, and ultimately, fully active suspension.

Currently, this is ‘Intelligent Chassis 2.0,’ characterized by basic coordination between X, Y, and Z. The removal of the mechanical link is the final domino needed to achieve true *full by-wire* control across all three axes, where vehicle behavior is defined purely in software.

Analysis: China’s New Role as a Standard Setter

Perhaps the most potent takeaway for the Western auto market is the strategic shift in standard creation. As the source material notes, Chinese entities like NIO, Li Auto, XPeng, BYD, and Geely participated in drafting this mandatory standard alongside international players. This demonstrates that Chinese OEMs are no longer just adopting foreign specifications; they are leveraging their rapid pace of electrification and software development to establish their own regulatory frameworks based on mass-production experience. For Western manufacturers competing in the world’s largest EV market, this means conforming to—and potentially being influenced by—standards where domestic expertise is already deeply embedded.

This regulatory clarity accelerates the timeline for full chassis integration, impacting everything from supply chain sourcing to ADAS profitability. See our analysis on the impact of Brake-by-Wire standardization on EV safety architectures. This is the foundation for the truly autonomous vehicle, built on a chassis that communicates instantly across all dimensions.