Monday, July 15, 2024

Unveiling Guangdong’s Innovative Leap: Transforming Global Economy Through Low-Altitude Sector Development

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Data Explorer | What you need to know about Guangdong’s low-altitude economy

As we usher in a new era of economic development, Guangdong Province has turned its focus towards the burgeoning sector of the low-altitude economy. This innovative economic model, first highlighted in a government report at the start of 2024, is earmarked as a primary catalyst for future industrial growth. With a burgeoning trajectory, it offers a deep dive into the possibilities that lie below the clouds.

In a remarkable testament to its growth potential, China’s low-altitude economy was valued at over 500 billion RMB as of 2023. The Civil Aviation Administration of China (CAAC) has forecasted a meteoric rise, projecting the industry to reach a staggering 2 trillion RMB by 2030. This exponential growth trajectory underscores the substantial economic and strategic potential of the low-altitude economy.

Marking a significant milestone in its development, the “Guangdong Province Action Plan for Promoting High-Quality Development of the Low-altitude Economy (2024-2026)” was launched in May. This ambitious plan seeks to transform Guangdong into a global pacesetter in the low-altitude economy arena by 2026. Aiming for a sector worth more than 300 billion RMB, the initiative sets its sights on an interwoven development strategy focusing on Guangzhou, Shenzhen, and Zhuhah as the cornerstone cities. This triangulation is designed to amplify the region’s capability in scaling the low-altitude economy to unprecedented heights.

In 2023, Shenzhen emerged as a frontrunner in drone manufacturing, reaching an annual production value of 96 billion RMB. This distinction places the city at the forefront of the country’s flight scale and proudly houses China’s inaugural local legislation on low-altitude economic activities. Shenzhen also boasts the world’s first eVTOL (Electric Vertical Takeoff and Landing) route that traverses sea and city, a pioneering achievement that completed its inaugural flight, setting a global benchmark.

Guangzhou, with its robust local manufacturing sector, spans the entire drone industry chain. The city is home to China‚Äôs first low-altitude economic application demonstration island and the world’s first domestically developed unmanned aerial passenger aircraft to receive airworthiness certification. These milestones not only underscore Guangzhou’s central role in the drone industry but also its leading position in the broader low-altitude economy landscape.

Meanwhile, Zhuhai has carved out a unique niche within this emerging sector by inaugurating China’s first fixed low-altitude sightseeing route to islands. The city, known for hosting the China International Aviation & Aerospace Exhibition, has laid further foundations by establishing the Zhuhai Low-altitude Economy Industry Alliance. This alliance aims to accelerate the establishment of the Low-altitude Economic Industrial Park, signaling Zhuhai’s ambitious commitment to advancing this nascent industry.

The concerted efforts in Guangdong towards developing its low-altitude economy highlight a strategic vision aimed at harnessing the untapped potential of low-altitude space. As these initiatives gain momentum, they promise to open up new avenues for economic development, technological innovation, and integration into the global value chain.

The trajectory of Guangdong’s low-altitude economy presents a fascinating glimpse into the future of regional and global economic landscapes. It underscores the shift towards more innovative, diversified economic models that leverage advanced technologies for sustainable growth. Guangdong’s pioneering approach serves as a beacon for other regions aiming to cultivate new economic engines and achieve high-quality development.

Alexandra Bennett
Alexandra Bennetthttps://www.businessorbital.com/
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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