• 04 Sep 2024 07:30 AM
• 0

China’s Low-Altitude Economy and eVTOL Diplomacy

By Jennifer Meszaros
Vertiflite Sept/Oct 2024

2024 is proving to be a watershed year for China as it advances its low-altitude economy in preparation for the integration of electric vertical takeoff and landing (eVTOL) aircraft operations. Through reforms in regulations, airspace management and the creation of pilot project zones, the country is entering a new era of greater liberalization of its general aviation (GA) sector.

While lacking an official definition, China’s low-altitude economy blends traditional GA, including rotary- and fixed-wing aircraft, with emerging technologies like uncrewed aircraft systems (UAS), flying cars and eVTOL aircraft for operations below 3,000 m (9,842 ft) altitude. Plans call to expand GA for emergency response, logistics, urban air transport and new markets, focusing on smart initiatives like green city management, eVTOL inter-city commuting and large-scale uncrewed freight to improve remote logistics. The move supports China’s efforts to establish an integrated, sustainable transport system, targeting a peak in carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060.

Additionally, the country aims to integrate its land, water and air transport sectors, leveraging various industrial advancements, including electric vehicles (EVs), battery development, artificial intelligence, computing power and 5G networks. According to the Xuancheng municipal government, there’s a significant 70–80% overlap in shared components between eVTOLs and EVs, with the remaining 20% comprising components from traditional aircraft.

Last year, China’s low-altitude economy exceeded approximately USD $70B; it is projected to reach around USD $275B by 2030, according to the Civil Aviation Administration of China (CAAC). Leading this growth are cities like Shenzhen, known as the country’s UAS capital, along with Guangzhou and Hefei, which have implemented supportive policies and financial incentives to foster robust industrial clusters.

Current progress stems from foundational reforms initiated in 2010 with the “Opinions on Deepening the Reform of China’s Low-Altitude Airspace Management,” aimed at unlocking low-altitude resources and enhancing aviation navigation. In 2021, the introduction of the “National Comprehensive Three-Dimensional Transportation Network Planning Outline” formally launched the concept of the low-altitude economy, expanding upon the 2019 “Outline for Building China’s Strength in Transport,” and aligning closely with China’s 14th Five-Year Plan in 2022 and other national policies.

Realizing a Low-Altitude Economy

In March, the low-altitude economy was introduced for the first time in the central government’s annual work report. By May, 29 provinces, autonomous regions, and municipalities had integrated the low-altitude economy into their respective 2024 plans. Regions include Anhui, Beijing, Guangdong, Henan, Jiangsu and Sichuan, to name a few.

On the regulatory front, the CAAC has amended over 30 regulations in recent years and continues to advance GA standardization. Last November, the regulator introduced draft airspace regulations to incorporate non-controlled airspace — including Class G, up to 6,000 m (19,685 ft) above mean sea level, and Class W, below 300 m (984 ft) and away from airports — for GA use.

The move aligns Chinese regulations more closely with international standards and promotes flexible airspace usage, including enhanced military-civilian integration. Recognizing that a lack of integration has long been a bottleneck to GA growth, government plans also prioritize increased military-civilian collaboration.

Integration is a key feature of current initiatives, with multimodal and intermodal transport crucial for achieving network synchronization and public acceptance. Beyond innovative tourism projects, such as EHang’s “air love flights” in Liangping, Chongqing, low-altitude economy firms and governments are implementing integrated application scenarios, particularly within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

In July, China launched its first “low-altitude + rail” intermodal transport project at Shenzhen North Station, integrating an Eastern Airlines AW139 helicopter with high-speed rail and subway services to enable one-hour travel across the GBA.

Realizing a Low-Altitude Economy

In Zhuhai, efforts are underway to establish the Tangjia Port-Guishan Island drone logistics and distribution route. Beginning this summer, the service will utilize EHang’s VT-20 series of UAS, with plans to integrate the EH216-S for last-mile applications and sightseeing tours between the mainland and various islands in the future.

Guangzhou recently revealed 12 application scenarios, covering sea, land, and air operations with drones, eVTOL aircraft, and uncrewed vehicles and ships. The city plans to build 100 vertiports by 2027. Elsewhere in China, Chengdu’s newly opened fixed-base operator (FBO) facility, a joint venture between Sino Jet and the Sichuan Airport Group, aims to pioneer the “business aviation + low-altitude economy” model. Last April, Sino Jet inked an agreement with Aerofugia for 100 AE200 eVTOL aircraft (see “Electric VTOL News,” Vertiflite, Sept/Oct 2023).

For its part, Aerofugia has been using helicopters to test urban routes as part of its Low Altitude Traffic Management Service Platform. Plans call for intercity travel scenarios that combine helicopters and eVTOL aircraft before scaling up to larger eVTOL operations.

Meanwhile, Hefei’s Luogang Park, once an airport, now serves as a testing ground for various applications, including drone delivery services, rescue operations, and flight trials conducted by Zero Gravity Technology and EHang.

China’s “100-million-yuan club” (roughly USD $13.8M), which includes well-funded firms like Volant Aerotech and AutoFlight, will also play a significant tourism role, ferrying passengers to AAAAA (“5A” rated) scenic spots, recognized as top tourist destinations. Earlier this year, three EH216-S aircraft were delivered to Wuhan’s Dinghy Ecological Tourism and Scenic Area, a renowned AAAAA site.

eVTOL Diplomacy

In looking beyond its own borders, Chinese companies are gaining momentum in exporting eVTOL diplomacy across the Middle East and Europe. Mirroring aviation diplomacy, multiple eVTOL firms are actively forging partnerships, agreements and collaborations with foreign entities to bolster bilateral and multilateral ties, foster economic cooperation and tackle common challenges like certification, safety standards, infrastructure development, technology exchange and trade.

For instance, EHang’s initiatives include a manufacturing facility and a command-and-control center in Abu Dhabi in the United Arab Emirates (UAE), air taxi and emergency response trials during Saudi Arabia’s Hajj pilgrimage this year, and recent validation of EGNOS satellite-based flights at its Spain urban air mobility center under SAMVA — an initiative spearheaded by the European Union Agency for the Space Programme (EUSPA).

AutoFlight has also been active in the UAE, conducting CarryAll cargo eVTOL trials in Al Ain in May. TCab Tech raised USD $20M from an undisclosed Middle Eastern fund in March, and XPeng AeroHT announced dealer partnerships in Azerbaijan, Egypt, Jordan, Lebanon and the UAE in February.

On the domestic front, China has successfully courted Germany’s Lilium to establish its regional headquarters, named “Powerful Wing,” in Shenzhen’s Bao’an District. In 2021, another German player, Volocopter, inked an agreement with Aerofugia to set up a joint venture in Chengdu.

With proactive global engagements and strong domestic initiatives, China is emerging as a pivotal player in advanced air mobility. These efforts are expected to yield substantial socioeconomic benefits and pave the way for sustainable transport solutions by 2035 and beyond.

About the Author

Jennifer Meszaros is a veteran aviation journalist, covering air transport and aerospace activities in the Asia Pacific region. A Canadian based in Cambodia, she also serves as an aviation advisor to Southeast Asian regulators and companies with a focus on market entry, safe operations, human resources and aircraft accident and incident investigations. She writes for Aviation International News (AIN), The Air Current and other top-tier aviation outlets.