A robotaxi, operated by a company in which Alibaba holds a strategic investment, crashed in Hunan province on December 6, injuring two people. The incident marks the sector’s first reported crash causing serious injuries in China. The crash renews fears of a regulatory backlash against the autonomous vehicle industry. The sector had recently begun regaining momentum following a previous regulatory slowdown. Authorities may now impose stricter rules, potentially impacting the development and expansion of companies in which Alibaba maintains vested interests.