China moves to boost low-altitude economy through legislation

BEIJING -- Chinese lawmakers are advancing legislation to accelerate the growth of the country's low-altitude economy, a rapidly emerging sector that includes drone delivery, aerial sightseeing and other industries operating below 1,000 meters above ground.

A draft revision to the 30-year-old Civil Aviation Law has, for the first time, added provisions related to bolstering the low-altitude economy, a move experts say effectively grants the sector legal status as a key component of China's strategic emerging industries.

Since 2024, widely regarded as the inaugural year of China's low-altitude economy, the sector has seen rapid expansion, with its market size projected to reach 1.5 trillion yuan (about $210 billion) by 2025.

"To sustain this momentum, there is a pressing need to improve laws and regulations, providing a stable policy environment that will ultimately enable the low-altitude economy to become a new engine of the country's economic growth," said Fu Cuiying, director of the Research Center on Law and Policy for General Aviation and Low Altitude Economy, Beihang Law School.

The latest version of the draft was recently reviewed by the national legislature for its second reading.

Despite the swift rise of China's low-altitude economy, it faces key constraints such as underdeveloped regulations and standards, technological bottlenecks, and lagging infrastructure development, said Zhu Keli, founding dean of the China Institute of New Economy.

To address these challenges, the new draft stipulates that the state should take measures to optimize the allocation of low-altitude airspace resources and promote the development of service and regulatory platforms for civil low-altitude flights.

"These measures aim to improve the scientific planning of airspace usage and shorten approval times for flight missions, effectively addressing common pain points in low-altitude flight, such as slow approvals and restricted operations, while enhancing safety and efficiency," Zhu said.

The draft revision also brings promising news for firms in the sector, as industry insiders believe that they will unlock broader market potential.

During an interview with Xinhua, He Tianxing, vice-president of EHang, a Chinese drone maker, highlighted the draft's push for enhancing civil aviation manufacturing and infrastructure.

He said that the move is expected to inject strong research and development momentum into companies in the unmanned aerial vehicle sector and lay a solid foundation for the low-altitude economy.

Capitalizing on the growing market potential, He said the company will further expand its urban air mobility operation network and steadily scale up the low-altitude operation market.

The draft also specifies the establishment and improvement of airworthiness certification, flight management, and other systems and standards to meet the development needs of the low-altitude economy.

Experts have, meanwhile, called for a stronger legal framework to support the growth of the low-altitude economy.

"Relevant laws, regulations, and rules should be promptly formulated and improved to provide a solid legal foundation for the lawful, rapid and orderly development of the low-altitude economy," said Gao Guozhu, vice-director of the research center at Beihang Law School.