Blocked from the U.S. market, Chinese self-driving technology firms are accelerating their push into Europe, setting up headquarters, striking data deals and road-testing — prompting alarm from local rivals over competition concerns.

In China, the world's largest car market, more than half of cars sold — including many entry-level models — now offer autonomous driving technology, sometimes as standard.

Beijing is pushing its companies to dominate autonomous-vehicle development globally while crafting national regulations to provide a clear roadmap at home.