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And China's rapid urbanization means this transformation will come much sooner here than in other countries. In light of this trend, China has set up comprehensive plans to transform and upgrade its automotive industry.

An uncompleted affordable housing project in Qingdao, Shandong province. [Photo/qingdaonews.com]

Andrew Maag, CEO at Alfred Dunhill, said the ruling "demonstrates Alfred Dunhill Ltd's unequivocal resolve in tackling infringement of our IP rights in China and globally".

Andrew Downe, Asia regional head of commodities and global markets at Macquarie Group, which invested in Megvii in its Series D round of financing, said earlier that "Megvii is a global AI technology leader and innovator with cutting-edge technologies, a scalable business model and a proven track record of monetization. We believe the commercialization of artificial intelligence is a long-term focus and is of great importance."

Analysts said the move shows China's dedication to developing new energy vehicles and will allow more room for innovation in technology and business models, which will consolidate the country's leading position in the sector.