The Fierce Lion 3 is controlled by a computer that can track nearby traffic with radar, video cameras and satellite navigation, enabling it to overtake and make other manoeuvres safely.
The car, which looks much like a standard sports utility vehicle, completed a 114 kilometre test drive in 85 minutes, reaching speeds of 105 kph, according to the PLA Daily, the official newspaper of the People’s Liberation Army.
The vehicle overtook slower-moving traffic 33 times, and on one occasion it refrained from overtaking because it would be dangerous.
Western firms such as Google are also researching driverless cars.
The PLA newspaper wrote: “the vehicle can effectively reduce driver fatigue when used for civilian purposes. When the driver is tired, it can enter the unmanned state to allow him to sleep in peace.”