Soaring beyond borders

Strong headwinds

Despite positive signs, the low-altitude economy's go-global vision still faces strong headwinds in the form of regulatory and technological challenges, as well as geopolitical instability.

"Its success will largely depend on overcoming regulatory hurdles, ensuring safety, gaining public acceptance, as well as continued innovation in both technology and business models," says Ip, citing propulsion systems, flight control systems, airframes, and navigation systems as critical parts, apart from batteries.

Although the technologies involved are similar to those for EVs, applications in electric flights may have to follow more stringent rules and standards for safety reasons. "If these challenges are met, it could indeed become another powerful representation of Chinese innovation and export capability in the global market," he says.

Lingering geopolitical risks could also present obstacles. The European Union has raised tariffs by up to 38 percent on Chinese electric cars. It followed the US decision to quadruple duties on Chinese EVs to 100 percent in May to boost its domestic manufacturing and jobs. It is unclear whether trade curbs would be imposed on electric aircraft.

What matters now is how to strike a balance between regulations and development across the globe. Citing Hong Kong as an example, Lam says drone flights primarily occur at heights of 90 meters above the ground to avoid conflicts with helicopters and other aircraft in use. However, current regulations require operators of small drones to apply to the Civil Aviation Department for permission to fly in unenclosed areas, thus limiting their operational flexibility.

Another obstacle is that there are still various airspace control zones in Hong Kong, including areas around Victoria Harbour, airports and hospitals. Existing aviation regulations stipulate that drones cannot exceed 25 kilograms, making them unsuitable for carrying passengers in the city.

Opportunities do exist for Hong Kong. But, the city will need to work hard to make things happen.

Contact the writer at evanliu@chinadailyhk.com