Aug 13 (Reuters) - China-based autonomous driving

startup WeRide has received approval from California to test its

driverless vehicles with passengers, according to a permit from

the state's utility regulator.

The move comes as the company seeks a valuation of as much

as $5 billion from its New York IPO even as the U.S. is set to

ban vehicles with China-developed systems, according to people

briefed on the matter.

The permit from the California Public Utilities

Commission (CPUC) - issued earlier this month for three years -

allows WeRide to ferry passengers in test vehicles with a driver

and without one. WeRide will not be allowed to offer rides to

the general public and cannot charge any fares.

WeRide has 12 active vehicles and will operate in San

Jose and nearby areas, CPUC said in a statement to Reuters.

Developing and commercializing robotaxis in the U.S. has

been tougher than expected with regulatory hurdles, opposition

from city agencies and public outrage.

Alphabet's Waymo, which has about 700 vehicles

in its fleet, is the only U.S. firm operating uncrewed robotaxis

that collect fares.

General Motors' ( GM ) Cruise restarted testing with safety

drivers in April after one of its vehicles hit a pedestrian last

year.

WeRide, founded in 2017, first received permits from

California to test its vehicles without passengers in 2021. The

company, which also makes autonomous vans, buses and street

sweepers, has driverless permits in Singapore and the United

Arab Emirates.

WeRide did not immediately respond to Reuters' requests

for further details.