According to chief engineer Feng Jianghua, the train identifies the pavement and has various sensors to emit travel information to the train.
This then enables the vehicle to follow guidance from the virtual track, reports Tencent.
It has a top speed of 70 kilometres an hour and after ten minutes of charging can travel 25 kilometres.
The new system is set to go into operation next year.
Kelly's mother Ellen told Daily the clip was 'hilarious' and that she had spoken to her son just as it started to become an internet sensation.