🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

China's low-altitude economy lacks growth roadmap, says industry group

Published 08/27/2024, 04:02 AM
Updated 08/27/2024, 04:07 AM
© Reuters. FILE PHOTO: A drone is seen during a demonstration for the media before a news conference by Chinese food delivery company Ele.me on its drone delivery service, in Shanghai, China May 29, 2018. REUTERS/Aly Song/File Photo

BEIJING (Reuters) - China's nascent low-altitude economy - made up of manned or unmanned aviation services at low elevations - has captured investors' interest but many lack information and guidance about how the sector could develop, an industry group said on Tuesday.

Initial plans for China's low-altitude economy often refer to services such as small-scale deliveries of goods at elevations of up to 1,000 metres (3,280 ft). But some localities are also eyeing at airspace of up to 3,000 metres (9,840 ft).

As China loosens airspace curbs and grants incentives to develop the sector, manufacturers in the world's top drone-making nation are testing ever-larger payloads and transport companies are planning air taxi services both manned and unmanned.

Its aviation regulator foresees a 2-trillion-yuan ($280 billion) industry by 2030 - a four-fold expansion from 2023 - with vertical mobility seen as a "new productive force" in areas such as passenger transport and cargo deliveries.

The sector will be an important driver for a new round of economic growth, said Luo Jun, executive director of the China Low Altitude Economic Alliance, adding that specific ideas on how to build the low-altitude economy were not sufficiently clear.

"There is no mature business model for the low-altitude economy to learn from abroad," Luo said in a statement. "Many companies are both enthusiastic and confused about the low-altitude economy."

Luo said in early August, when the China Low Altitude Economic Alliance comprising more than 100 companies was established, that the group would take the lead in guiding cities to quickly develop applications that can be replicated commercially.

To start, infrastructure and supporting services must be built, but duplication should be avoided, he warned.

Chinese civilian drone makers have been testing larger unmanned aircraft to transport cargo this summer, fuelled by ambitions to autonomously ship goods to destinations more than 2,000 km (1,240 miles) away.

Earlier this month, a Shanghai company launched manned helicopter services for travellers looking to cut travel time between Shanghai Pudong Airport and Kunshun, a city in Jiangsu province, to 20 minutes from several hours.

© Reuters. FILE PHOTO: A drone is seen during a demonstration for the media before a news conference by Chinese food delivery company Ele.me on its drone delivery service, in Shanghai, China May 29, 2018. REUTERS/Aly Song/File Photo

In central Hubei province, the prototype of a civilian airship flew nearly 1,000 km (625 miles) on a test flight last week, with authorities hoping to tap demand for sightseeing tours.

($1 = 7.1257 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.