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Caixin Global
Caixin Global
Business
Ding Yi

South China Province Announces Plan to Develop Low-Altitude Economy

What’s new: South China’s Guangdong province has a plan to develop its “low-altitude economy,” which the central government wants to become a future driver of economic growth.

The southern Chinese province aims to set up a low-altitude airspace management mechanism that can operate smoothly and basically complete the construction of related infrastructure, with the goal to become a world-leading hub for the low-altitude economy by 2026, according to the action plan published on Wednesday.

The province will facilitate coordination among the PLA Air Force, local government and civil aviation administrations to study low-altitude airspace classification and flight management, the plan said. Guangdong will also promote the rollout of pilot programs to allow flying vehicles to be used for services like freight delivery at low altitudes.

It will also accelerate the construction of an internet-connected platform that can provide communication, navigation and surveillance functions for aerial vehicles operating in low-altitude airspace.

The background: The low-altitude economy refers to one where drones and flying vehicles are used to develop the transportation, logistics and tourism businesses, as well as the manufacturing industry of such vehicles.

The Guangdong city of Shenzhen is at the forefront of developing its own low-altitude economy. In July, the local government signed deals with startups EHang Holdings Ltd. and Shanghai AutoFlight Co. Ltd. to explore the use of their electric vertical take-off and landing vehicles in the city.

Local authorities elsewhere have followed suit, including Anhui province’s capital Hefei in East China, which in October forged a $100 million partnership with Guangzhou-based EHang.

Contact reporter Ding Yi (yiding@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

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