Saturday, May 18, 2024

China’s Low-Altitude Economy Ascends Beyond 500 Billion Yuan: Projections and Impacts Explained


China’s Low-Altitude Economy Soars Beyond 500 Billion Yuan, CAAC Reports

The low-altitude economy in China has experienced tremendous growth, marking a significant milestone by surpassing the 500 billion yuan (around 70 billion USD) mark by the end of 2023. The Civil Aviation Administration of China (CAAC) forecasts even more robust growth for this sector, with expectations set for it to reach a staggering 2 trillion yuan by 2030. This showcases China’s determined efforts in nurturing this strategic, emerging industry.

During a recent press conference, Han Jun, the CAAC deputy head, shed light on the comprehensive nature of the low-altitude economy. It encompasses a wide array of sectors, including the research and development (R&D) of aircraft, the construction and operation of low-altitude flight infrastructure, alongside various flight services. The significance of this sector extends through its extensive industrial chain, promising substantial economic and developmental benefits.

Han also highlighted the CAAC’s proactive stance in fostering this economic sector’s growth. Efforts are particularly focused on enhancing the low-altitude flight service system, which includes measures such as streamlining the application and approval processes for low-altitude flight plans. Additionally, the CAAC plans to back enterprises in testing drone logistics distribution within pilot projects across diverse provinces such as Jiangxi, Guangdong, Shaanxi, and Sichuan. These initiatives collectively aim to bolster the low-altitude economy’s infrastructure and operational mechanisms.

At the core of the low-altitude economy lies the general aviation sector, which serves as its backbone, encompassing low-altitude flights, air tourism, passenger transportation, and more. This economic concept leverages the low-altitude airspace for a variety of purposes including general aviation services, scientific research, and education, establishing a multifaceted impact across different spheres.

The CAAC’s recent data provides insight into the sheer scale of the general aviation sector, a vital component of the low-altitude economy. By the close of 2023, China boasted 689 general aviation companies, with a registered fleet of 3,173 general aviation aircrafts, alongside 451 established general aviation airports. This infrastructure not only supports the current operations within the low-altitude economy but also lays a solid foundation for its anticipated expansion moving forward.

The trajectory of China’s low-altitude economy signifies a promising avenue for innovation, economic development, and the augmentation of aviation-related services. With the government’s steady support and strategic planning, this sector is poised to achieve remarkable growth, contributing significantly to the nation’s broader economic landscape in the coming years.

Alexandra Bennett
Alexandra Bennett
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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