Regions are at the forefront of exploiting opportunities in the niche sector

The low-rise economy, first highlighted in the Chinese government’s 2024 Work Report, is rapidly gaining momentum across the country.

Through strategic policies and focused development plans, some provinces and cities are seizing the opportunity to significantly accelerate the development of low-altitude industries.

For example, Beijing recently published the draft High-Quality Low-mountain Economic Development Plan (2024-27) for public feedback. The comprehensive plan outlines six main categories and 20 specific tasks aimed at significantly revitalizing the industry.

The goal is to have over 5,000 companies working in the low-altitude economy by 2027, ensuring nationwide coverage of low-altitude technology services and increased international and domestic influence. The plan emphasizes innovation and application and aims to contribute more than 100 billion yuan ($13.8 billion) to the city’s economy over three years, Beijing said.

The Guangdong Provincial Government’s 2024 Work Report clearly supports the development of comprehensive general aviation industrial demonstration zones in Shenzhen, Guangzhou and Zhuhai. The 2024-2026 plan aims to make the province a global leader in the low-mountain economy, targeting an industry scale of more than 300 billion yuan within three years.

Shandong, an industrial powerhouse, is focusing on the drone industry. The “Shandong High-Quality Development Implementation Plan for the Drone Industry” aims for the drone manufacturing sector to exceed 10 billion yuan by 2025. This includes supporting about 10 leading enterprises with performance exceeding 1 billion yuan and about 100 innovative small and medium-sized enterprises enterprises.

Luo Jun, secretary-general of the China Alliance for the Low-Altitude Economy, said the potential of the low-altitude economy is enormous, and market demand is driving the development of advanced personal air vehicles and sophisticated logistics tools.

He stressed the need for regions to exploit their unique advantages without excessive expansion.

“China’s low-altitude flight economy is still in its early stages,” Luo said, noting the significant market space and current focus on lightweight, low-speed drones and small vertical takeoff and landing aircraft.

According to him, as the low-altitude economy evolves, Chinese companies will be ready to innovate, improve infrastructure and ensure sustainable growth. The dynamic sector will become a cornerstone of China’s economic landscape, supporting a new quality of production force and serving as a new engine of growth.

A notable example of technological progress is Zhoushan in Zhejiang Province, where a huge drone recently took off from a large fishing vessel, transporting live fish to Shanghai in just an hour. This significant reduction in time compared to a traditional three-hour boat trip was possible thanks to the wide coverage of the 5G network.

Using multi-frequency coordination and low-altitude coverage optimization, China Mobile said it has achieved comprehensive 5G network coverage at altitudes up to 300 meters, ensuring reliable long-distance drone communication.

China Mobile is also pioneering the construction of “zero-emission” 5G base stations on uninhabited islands using solar energy, overcoming challenges such as harsh weather conditions and lack of power. These efforts ensure continuous network connectivity, facilitating efficient drone operations for logistics, maritime rescue, emergency response and environmental monitoring.

Tian Gangyin, founder, chairman and president of United Aircraft Group, said that the development of low-altitude flights in the future, especially with the rapid growth of drones, requires robust interconnection and management solutions.

He stressed the need for comprehensive communication, monitoring and remediation to effectively manage this expansion.

Sun Xin, an assistant professor at Beihang University, said application scenarios constitute a critical link in the industrial chain of the low-mountain economy. Currently, the low-mountain economy has been integrated with tourism, agricultural production, environmental monitoring, rescue and logistics. The range of applications is constantly expanding and the “flight radius” is increasing.

Meanwhile, unmanned and manned flight operations are in the experimental verification stage, and drone logistics services have expanded to urban business districts and communities, he added.

From a regional perspective, local governments use various financial tools to promote the coordinated development of all segments of the low-mountain economy, with significant advantages of industrial clusters and distinctive industrial characteristics, Sun said.