China's Sky-High Ambitions: Boosting the Low-Altitude Economy

China's burgeoning low-altitude economy, encompassing manned and unmanned aviation services at lower elevations, is drawing investor interest. Plans include small-scale deliveries, air taxis, and transport services, with sector growth predictions reaching $280 billion by 2030. An industry group emphasizes the need for clearer developmental strategies and infrastructure to avoid duplication.

China's emerging low-altitude economy, characterized by manned and unmanned aviation services at lower elevations, is attracting considerable investor interest. However, many lack guidance on the sector's future development, as highlighted by an industry group on Tuesday.

Initial plans for this new economy include small-scale deliveries at elevations up to 1,000 metres, with some localities aiming higher up to 3,000 metres. As China eases airspace restrictions and provides incentives, leading drone manufacturers are testing larger payloads, while transport firms are pioneering air taxi services. The nation's aviation regulator envisions a 2-trillion-yuan ($280 billion) industry by 2030, a monumental leap from 2023. Vertical mobility is poised to revolutionize passenger transport and cargo deliveries.

Luo Jun, executive director of the China Low Altitude Economic Alliance, stressed the necessity for a definitive roadmap to build this economy, remarking on the absence of mature business models globally. Formed in August, the Alliance aims to guide cities in commercial application development. Concurrently, Chinese civilian drone makers are testing larger aircraft for long-distance cargo shipments. In parallel, Shanghai launched manned helicopter services to drastically reduce travel time. In Hubei, a civilian airship prototype recently completed a significant test flight, indicating potential growth in sightseeing tours.

(With inputs from agencies.)