From ground to sky: China's low-altitude revolution

Naveen Silva

The world is moving at an accelerated pace, driven by technological breakthroughs, geopolitical changes, and shifting demographics. Amid this dynamic backdrop, a new frontier is emerging, the low-altitude economy. Still in its infancy, this sector has yet to reveal its full potential, but it promises to deliver far-reaching benefits for humanity in the years ahead. 

The low-altitude economy refers to an emerging economic concept that operates within airspace below 3,280 feet (1,000 meters) above ground level. The scope of the low-altitude economy is broad, covering low-altitude flights, air tourism, general aviation services, scientific research, and many innovative applications that continue to emerge. It is primarily centered on the deployment of civilian manned and unmanned aircraft to support a wide range of low-altitude flight operations.

We once saw flying cars only on screen, today, however, China has made them a reality. Flying cars are only one element of this broader concept, which also encompasses drones and airships, and is broadly referred to as eVTOL or electric vertical take-off and landing. While this concept has been closely followed by experts worldwide, China elevated its importance by prioritizing it at the annual Central Economic Work Conference in 2023 as a strategic emerging industry. 

China has long positioned itself as a forward looking nation, striving to integrate advanced technologies into the real economy while fostering futureoriented industries. The country believes that achieving breakthroughs in these areas is essential to sustaining higher GDP growth rates and elevating its national economy. The low-altitude economy is expected to be one such area that the country will fully leverage.

According to the Civil Aviation Administration of China (CAAC), the country’s low-altitude economy was valued at approximately 500 billion yuan in 2023, with its scale projected to expand to 2 trillion yuan by 2030. CAAC has been tasked with promoting the development of a low-altitude flight service system, while also working to simplify the application and approval procedures for low-altitude flight plans.

As part of these efforts, Shenyang, one of China’s oldest industrial centers, renowned for its aerospace research and manufacturing has established a comprehensive industrial chain that provides a strong foundation for advancing the low-altitude economy.

In recent years, unmanned aerial vehicles (UAVs) in China have demonstrated significant progress, with 1.27 million units registered and approximately 19,000 enterprises engaged in UAV operations as of 2023. UAV flight activities serve as the primary catalyst for the low-altitude economy’s future growth. In 2024, China took a decisive step toward institutionalizing the low-altitude economy by creating a specialized department. 

Its mandate includes designing and executing strategies, drafting medium and long-term development plans with policy recommendations to ensure the sector’s sustainable growth. In another move, China has successfully conducted the maiden ferry flight of the AS700 civil manned airship in 2024, achieving a flight duration of more than one hour. The project has already attracted commercial interest, with developers receiving multiple orders, particularly from the tourism industry. 

Experiencing firsthand the vast benefits of low-altitude flight, China in 2024, achieved another milestone with its first cross-sea drone flight for public cargo logistics. The large drone successfully transported 455 kilograms of shrimp-plant seedlings, saving approximately 10 hours in transit time while reducing labor costs and packaging expenses. This breakthrough highlights the multi-faceted advantages of integrating this concept into commercial supply chains. 

Moreover, in 2026, China has designated the low altitude economy as a key aspect under its 15th five year plan, elevating the sector to national priority status. Along with that authorities have emphasized their commitment to expediting research on legislation for AI and the low-altitude economy, aiming to strengthen the technological innovation through a structured legal framework.

Can Sri Lanka tap into this opportunity?

Sri Lanka’s aviation sector has experienced steady growth despite occasional setbacks caused by geopolitical challenges. It continues to play a pivotal role in driving economic development, particularly as the tourism industry relies heavily on aviation connectivity. The lowaltitude economy presents another pathway that Sri Lanka’s aviation sector should begin to explore. 

Urban mobility in Sri Lanka, particularly during peak hours, remains heavily congested, leading to significant economic inefficiencies. This raises a critical question, can the country achieve faster and more seamless connectivity whether in tourism across key hotspots or in business travel, at a time when other nations are making rapid strides in infrastructure advancements? 

Moreover, as Sri Lanka faces the severe impacts of climate change, lowaltitude technologies could play a vital role in disaster relief, search and rescue operations, and emergency assistance, offering faster deployment compared to ground based operations. Given these circumstances, Sri Lanka has a tremendous opportunity to capitalize on these innovations, if authorities adopt the right mindset today to build a future ready ecosystem.

(Naveen Silva is currently working as a researcher in a private investment research firm, focusing on broader economic issues, including geopolitical developments, and sustainability matters, and their implications across various sectors with special focus on related developments in China. A master’s degree holder in Applied Finance from the University of Sri Jayewardenepura, Silva has over 4 years of professional experience in the investment banking and financial services industry, serving clients across the U.S. and Europe.)