China's top economic planner sets up department to boost low-altitude economy

China's top economic planner has established a department for the development of the burgeoning low-altitude economy, as the country strives to foster new growth drivers.

The low-altitude economy refers to the economic activities and industries centered around manned and unmanned aerial vehicles operating in the airspace, usually within 1,000 meters above the ground.

The new department, under the National Development and Reform Commission (NDRC), is responsible for formulating and organizing the implementation of strategic as well as mid-term and long-term development plans, providing policy recommendations and coordinating major issues related to the low-altitude economy, according to the NDRC.

The department has recently held symposiums on advancing the construction of low-altitude infrastructure and low-altitude intelligent network systems, according to the latest updates on the NDRC website.

Thriving industry

This industry is growing rapidly in China, with over 50,000 enterprises engaged in related businesses as of September, according to data from market research firm CCID Consulting. It estimates the scale of the country's low-altitude economy at more than 670 billion yuan (about $93 billion) in 2024, with projections to exceed 1 trillion yuan by 2026.

According to the Civil Aviation Administration of China (CAAC), there were 689 general aviation firms in China at the end of 2023, with 3,173 general aviation aircraft registered and 451 general aviation airports established. In the first half of this year, there were nearly 608,000 newly registered drones, an increase of 48 percent from the end of last year.

Beijing, Shanghai, Shenzhen, Suzhou and dozens of other cities have announced supportive policies to develop the low-altitude economy.

The infrastructure and flight service systems for the sector will gradually improve steadily over the next few years, driven by advancements in intelligent network technologies and strengthened management practices, Li Deren, a renowned photogrammetry and remote sensing expert, told CGTN on Saturday. 

Li, winner of the 2023 State Preeminent Science and Technology Award –  China's top science honor – estimates that the country's low-altitude market will reach 3 trillion yuan in the future, adding that the establishment of a governing body at this moment is timely.

Concerted efforts 

This year, for the first time, the term low-altitude economy was included in the Chinese government's work report. China will develop general aviation and the low-altitude economy, according to a key resolution adopted during the reform-themed third plenum of the 20th Communist Party of China Central Committee in July.

In recent months, several departments, including the CAAC, the Ministry of Industry and Information Technology (MIIT) and the Ministry of Transport (MOT), have established specified teams responsible for the low-altitude economy and introduced relevant policies to accelerate its growth from different perspectives.

In November, the MIIT held the first plenary meeting of the low-altitude industry development leading group to clarify the development direction of the emerging industry. The group studied and assigned key tasks for promoting the high-quality development of the low-altitude industry, which, according to the ministry, represents the direction for fostering new quality productive forces and new economic growth engines while emphasizing its strategic importance.

On December 17, the MOT released the "General Aviation Airport Management Regulations," ensuring safety in airport operations while focusing on cost-saving and efficiency. These regulations aim to ease restrictions on airports that have minimal public impact, promoting the growth of both large and small general aviation airports to stimulate market vitality.

Besides, the China Meteorological Administration, in collaboration with the National Data Bureau, will work on building demonstration projects where fine meteorological data helps support the growth of the low-altitude economy.

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