How China Is Building a $489 Billion Economy in the Sky
- China’s low-altitude economy is forecast to reach CNY 3.5 trillion (USD 489 billion) by 2035, per the Civil Aviation Administration of China.
- Around 77,000 companies drive China’s low-altitude economy, from drones to light aircraft for commerce, according to the Academy of Chinese Studies.
Imagine arriving at a meeting on the 63rd floor of an office tower in Shenzhen. "What a view," you say, looking at the cluster of buildings that have cropped up seemingly within a stone's throw of Hong Kong.
"What a waste, you mean!" your business partner exclaims, pointing out the window. "The next economic boom won't be in buildings. It will be up there," he says, gesturing to the sky. "We should be maximizing that space for economic activity."
Chinese authorities have expressed their aspiration to transform the airspace below 3,000 meters into commercial space. The plan was officially presented in the Report on the Work of the Government at the National People's Congress in January 2024 by Premier Li Qiang. The objective is to accelerate the supervision system for skyway infrastructure and encourage what it calls low-altitude industries, in tourism, air sports, and consumer drones.
To realize this vision, China has ambitious plans to develop 6G infrastructure, an essential element for the low-altitude economy to take off. This requires an Integrated Sensing and Communication (ISAC) network capable of sensing and monitoring the spatial location of passive (non-connected) objects while communicating with mobile networks, according to China’s Ministry of Industry and Information Technology.
The plan envisions cities across China installing takeoff and landing points for electric vertical takeoff and landing (eVTOL) aircraft for large-scale commercial use. These vertiports would serve as local hubs connecting cities not covered by traditional aircraft and slowed by ground transportation.
Today, the primary challenge to increasing the number of air taxis is where they will land.
