This could include flying taxis, also known as electric vertical take-off and landing (eVTOL) aircraft, businesses using both drones or crewed aircraft for package delivery, drone light shows and rapid-response emergency services.
This “low-altitude economy” was first designated a “strategic emerging industry” at the central economic work conference in December, a gathering that sets China’s national economic agenda.
The sector is estimated to contribute between 3 trillion yuan and 5 trillion yuan (US$414 billion-US$690 billion) to the national economy by 2025, according to a white paper published by the International Digital Economy Academy in Shenzhen last year.
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‘Flying taxi’: Drone rises to the occasion with first test flight in real-life air traffic
‘Flying taxi’: Drone rises to the occasion with first test flight in real-life air traffic
On Friday eVTOL maker EHang said Taiyuan Xishan Ecological Tourism Investment Construction had placed a 113 million yuan order to buy 50 fully autonomous, two-passenger EH216-S drones.
Taiyuan Xishan, which is owned by the municipal government of Taiyuan, the capital of Shanxi, also signed a deal to buy another 450 of the drones over the following two years to boost tourism and associated industries in the province, according to EHang, which is also listed in the US.
In October, EHang received an airworthiness “type certificate” from the Civil Aviation Administration of China for its fully autonomous drone, the EH216-S, that carries two passengers.
The purchase agreement between Taiyuan and EHang came shortly after China’s top economic planner published guidelines to promote consumer spending in tourism as part of a national push to boost consumption.
The National Development and Reform Commission said on May 24 that the equipment upgrade programme would include recreational drones for entertainment.
“All localities should coordinate funds from multiple channels and provide active support. Enterprises and institutions in the cultural and tourism fields should be encouraged to use their own funds to actively update equipment and improve service quality,” the NDRC said.
It said “qualified projects” could apply for funding from ultra-long term treasury bonds.
Shanxi is also channelling more money into the low-altitude economy by subsidising up to half of the cost of establishing support services for low-altitude flights as well as the airport expansion to enable those flights.
Each airport can receive up to up to 30 million yuan in subsidies, and training bases are eligible for up to 10 million yuan, the Shanxi provincial government said last week.
Subsidies will be offered to “encourage the introduction of international and national aviation sports events, drone competitions and other activities with aviation characteristics”, the statement said.
Other provinces, including Zhejiang on the east coast, have said they will use funds from local government bonds and ultra-long treasury bonds to build new infrastructure for both civil aviation and low-altitude flights.
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Israel tests Chinese drone taxi over Jerusalem to help ease country’s traffic congestion
Israel tests Chinese drone taxi over Jerusalem to help ease country’s traffic congestion
While the central government has given strong support to efforts to boost the drone and flying taxi industries, analysts said there were many questions about the safety, reliability and cost effectiveness of these products.
“eVTOL has high requirements for batteries and driving technology. If the technological development in these is not as [advanced as] expected, it will affect the breakthrough of domestic enterprises in the relevant market and affect the price of eVTOL,” Cinda Securities said in a note in April.
“There are many processes and procedures for gaining the airworthiness certification. If the progress of airworthiness certification slows down, it will affect the implementation of these policies.”
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