As global tech competition intensifies, the Chinese mainland's focus on emerging sectors like the low-altitude economy and smart driving is drawing significant attention during this year's Two Sessions. National People's Congress Deputy and XPeng Chairman He Xiaopeng highlighted the transformative potential of these industries in a recent discussion with media, underscoring their role in China's tech innovation strategy.
A New Frontier: Low-Altitude Economy Takes Flight
The 'low-altitude economy'—encompassing drones, air taxis, and aerial logistics—represents a $500 billion market by 2025, according to industry forecasts. He emphasized that advancements in battery efficiency and AI-driven navigation systems could position China as a leader in this nascent sector. XPeng's subsidiary, AeroHT, recently showcased a flying car prototype, signaling aggressive investment in airborne mobility solutions.
Smart Driving Race Accelerates
He also outlined progress in autonomous vehicle development, noting XPeng's 'XNGP' advanced driver-assistance system now covers over 200 Chinese cities. 'Integration between smart driving infrastructure and regulatory frameworks will define the next phase of growth,' he said, referencing discussions at the Two Sessions about standardized national policies for connected vehicles.
Sector Convergence & Policy Momentum
Analysts suggest the pairing of low-altitude tech with smart vehicles could unlock efficiencies in supply chains and urban planning. During the legislative meetings, multiple proposals addressed funding for R&D clusters and cross-industry collaboration—a sign of strategic alignment with He's vision.
For investors and tech observers, these developments signal China's push to establish high-value technological moats while addressing urbanization challenges through innovation.
