China clears first eVTOL aircraft for production as ‘low-altitude economy’ takes wing

Listed as a strategic emerging industry at the tone-setting central economic work conference in December, the sector has seen heavy investment and policy support from Beijing – in similar fashion to its now-thriving electric vehicle sector, which is conquering the global market.

As China intensifies its presence in civil aviation to break the long-standing duopoly of US-based Boeing and European multinational Airbus – a daunting task, considering the domestic industry’s relative infancy and the battery of trade restrictions any tech-intensive field is bound to encounter – the newer and more open low-altitude arena, driven by wide adoption of eVTOL aircraft and unmanned aerial vehicles, presents a less arduous path for China to become a world leader.

The sector grew by 33.8 per cent year on year in 2023 to 506 billion yuan (US$70 billion) and is expected to surpass 1 trillion yuan by 2026, according to a report released by a research institute under the Ministry of Industry and Information Technology (MIIT) earlier this month.

In particular, the scale of China’s eVTOL industry reached 980 million yuan in 2023 – a year-on-year increase of 77.3 per cent – and is projected to reach 9.5 billion yuan in value by 2026.

Cities across the country have rolled out supportive measures to unlock the potential of their local low-altitude economies, with over 20 provinces dedicating space to the sector in work reports delivered to their legislatures.

China’s support system for low-altitude flights has basically taken shape
Song Zhiyong

A guideline for the general aviation industry released last month showed Beijing aimed to jump-start equipment supply and innovation by 2027, turning aviation into a trillion-yuan market and driving force for low-altitude economic growth by 2030.

“China’s support system for low-altitude flights has basically taken shape,” said CAAC head Song Zhiyong on Tuesday, adding this “laid a foundation” for the growth of the low-altitude economy.

Song said China could achieve “full coverage of supervision and service for low-altitude flights”, with 449 general airports, a national information management system, seven regional information systems and 32 flight service stations established by the end of last year.

But that support system still faces challenges, he said, in terms of “infrastructure layout planning, regulatory system construction and the integrated operation of manned and unmanned aircraft.”

He pledged that CAAC would work on a responsibility system for low-altitude flights to ensure national security and public safety, as well as enhance the regulatory system and national supervision platform for flight activities within the threshold.