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A self-driving taxi in Wuhan. (Photo by Shunsuke Tabeta)

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- "For your safety, please fasten your seat belt," the car said before steering itself away from the curb and gliding forward.

Chinese internet group Baidu operates about 400 driverless taxis like this one in the city of Wuhan, covering an area about 50% bigger than Tokyo. With government subsidies, fares are about 1.5 yuan to 2 yuan (21 cents to 28 cents) per kilometer, less than half as much as for a cab with a driver.

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