Once a niche concept buried in transport planning documents, the "low-altitude economy" has rapidly ascended to become a national strategic priority for the Chinese mainland. What began as a specialized term five years ago is now an emerging pillar industry, with the government eyeing a market expansion from 1.5 trillion to 3.5 trillion yuan by 2030.
The low-altitude economy encompasses a wide range of aerial activities operating below 1,000 meters, including delivery drones and electric vertical takeoff and landing (eVTOL) aircraft. While the vision is ambitious, the focus has now shifted from establishing a policy framework to building a self-sustaining commercial ecosystem.
A Regulatory Sprint
The acceleration of this sector has been marked by a rapid series of regulatory milestones. After appearing in a national transport blueprint in 2021 and the government work report in 2024, the industry was officially upgraded to an emerging pillar industry this year. A significant milestone is approaching on July 1, when a revised aviation law will take effect, introducing a dedicated chapter to govern flights below 300 meters.
Recent updates in May 2026 have further streamlined operations. A nationwide airspace update—the largest since the framework's inception—has expanded access. In Shenzhen, the global hub for drone manufacturing, 75% of the airspace below 120 meters is now open for use, providing a fertile testing ground for urban air mobility.
Entering the Passenger-Carrying Era
The transition from cargo to passengers is already underway. In March 2025, two companies were granted the first commercial operating certificates for crewed unmanned aircraft, signaling the dawn of a new era in transportation. Currently, six cities are conducting eVTOL trials, testing the feasibility of air taxis and urban transit.
As the Chinese mainland continues to build out its infrastructure and legal frameworks, the global business community is watching closely. The real test lies in whether these regulatory sprints can translate into widespread commercial viability, turning the skies into a new frontier for economic growth.
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Can China grow its low-altitude economy from 1.5 tln to 3.5 tln yuan?
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