As China’s low-altitude economy gains speed, incentives may feature at upcoming Two Sessions

SHENZHEN: From flying taxis to drone cameras, China’s low-altitude economy is taking off.

In a rare move to drive growth in a specific sector, the country’s economic planner created the Low-Altitude Economy Development Department in December last year.

The National Development and Reform Commission expects the sector – which involves flights by both manned and unmanned aircraft below 1,000m – to reach more than US$200 billion by this year, and then double that amount in 10 years.

Incentives for the emerging industry could soon be outlined at China’s Two Sessions meetings, as the nation seeks new engines of growth to boost its ailing economy.

The Two Sessions, known as lianghui in Chinese, are the nation’s most important political meetings of the year. They are set to begin on Tuesday (Mar 4) and will reportedly last for about a week.

DRONE DELIVERIES

The potential of the low-altitude economy is particularly apparent in the southeastern city of Shenzhen, which has occasionally been dubbed China’s Silicon Valley.

Drone deliveries – considered one of the most scalable technologies in the sector – have been growing in popularity there.

When CNA ordered some drinks on the Meituan delivery app from a park, the order took about 20 minutes to arrive – roughly the same time as a delivery via bicycle. But the delivery fee was a little steeper, and customers are restricted in the number of items they can order due to the drone’s weight limit.

For Shenzhen resident Leo Li, he is banking on the sector to go far.

The 21-year-old computer science graduate secured a job at Shenzhen-based firm CaddxFPV two years ago, fresh out of university. The company develops first-person-view (FPV) drones – right up Li’s alley.

He told CNA he was exposed to model planes and drones from a young age.

“When I attended university, I got to know an interest club, dealt with drones and the school also provided funding for this area. I slowly carried out research projects and developed a deeper interest in this industry,” he said.

Still, a steep learning curve awaited him at his new employer. He said drones are “much more segmented” compared to other disciplines.

“For example, cameras, transmission, mapping, flight controls and electronic control systems -- you require a high level of expertise even if they are just minor components. You need a comprehensive understanding,” he added.

“I did not know anything when I first started.”

MORE TRAINING TAKING PLACE

Now, Li has gained enough knowledge and skills to train others, on top of his day job as a product manager.

He teaches other enthusiasts how to operate drones, basic software and hardware knowledge, and the theories and principles of flight control.

CaddxFPV marketing director Brian Luo said it was “very hard” to find skilled professionals like FPV pilots or engineers before the concept of the low-altitude economy took flight.

“But last year, there were many training institutes (that started) to train pilots. China really needs about 1 million pilots to support the low-altitude economy,” he noted.

“When people talk about low-altitude economy, they only focus on the bigger ones, like the eVTOLs,” added Luo, referring to electric vertical take-off and landing aircraft – also known as air taxis or flying taxis.

He said the company could partner traditional industries to explore applications like filming, delivery, and search and rescue.

In fact, the business plans to hire about 100 more workers this year as interest in the sector piques.

It has also gotten a boost to scale up operations. Luo said the Chinese government connected the firm with industry partners for better supply chain management and product innovation.

“We worked with our local government to organise a FPV drone racing event … it's like Formula 1 in the sky,” he enthused.

Drone racing will also make its debut at the country’s 15th National Games in November.

Last year, Guangdong province proposed building a low-altitude economy hub by 2026, and pledged government funds to support the endeavour. The plan could pave the way for low-altitude air routes between Guangdong and Hainan.

For Li, he said he believes drones will be used more widely in the future.

“Perhaps I’ll be working in this sector until I’m much older,” he added.