The Swedish company will test up to 100 such cars on express roads and highways which lead into its many mega cities, company executives told Reuters.
While it's unclear when the trial will being, it is currently looking for a city which could provide the necessary permissions, regulations and infrastructure for the experiment.
The company is planning to conduct a similar test in Gothenburg, Sweden next year.
Volvo has set itself a goal that nobody should be killed or seriously injured in one of its new vehicles by 2020.
Håkan Samuelsson, president and chief executive of Volvo, said: "Autonomous driving can make a significant contribution to road safety."
"The sooner autonomous driving cars are on the roads, the sooner lives will start being saved."
He praised China's efforts to develop the requisite technology, but said it must to do more to create a regulatory environment which will oversee driverless cars in the future.
"There are multiple benefits to autonomous driving cars. That is why governments need to put in place the legislation to allow autonomous driving cars onto the streets as soon as possible."
"The car industry cannot do it all by itself. We need governmental help."