Alphabet's Waymo sets up subsidiary in Shanghai

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Alphabet's self-driving unit Waymo has set up a subsidiary in Shanghai, according to a business registration filing, the latest sign that the US Internet giant is attempting to make new inroads into China.

Waymo established a wholly-owned company called Huimo Business Consulting (Shanghai) Co. on May 22 in Shanghai's free trade zone with registered capital of 3.5 million yuan (about 510,703 US dollars), according to China's National Enterprise Credit Information Publicity System.

Its scope includes business and logistics consultancy as well as services related to the design and testing of self-driving car parts, said the document, which also listed the firm's legal representative as Kevin Bradley Vosen.

Screenshot of Waymo's Huimo Business Consulting (Shanghai) Co.'s registration information via the National Enterprise Credit Information Publicity System

Waymo on Friday confirmed that it had set up a legal entity in China several months ago and has people working there.

According to the Shanghai Municipal Commission of Economy and Informatization, its Chairman Chen Mingbo headed a delegation to Silicon Valley from July 17 to 20, visiting several companies including Google. The delegation also took a test ride of driverless vehicles.

Chen's visit introduced Shanghai's industry development and future planning, and expressed the hope that related companies can expand their investment in Shanghai, said the Commission.

Alphabet's Google, which quit China's search engine market in 2010, has been actively seeking ways to re-enter the sector in the country through investment and cooperation.

This March, China issued licenses to automakers allowing self-driving vehicles to be road-tested in Shanghai, including Shanghai-based SAIC Motor Corp. Ltd. and electric vehicle start-up NIO. Following that, the tech giant Baidu also got green light to perform open-road tests for its driverless vehicles.

Waymo's entering the Chinese market will certainly make a difference, said one industry insider, "No matter it brings cooperation or competition, it will promote technological development of the whole industry."

(With inputs from Reuters)

(Top image: Waymo LLC signage is displayed on the door of a Chrysler Pacifica autonomous vehicle in Chandler, Arizona, US, July 30, 2018. /VCG Photo)