China is rapidly developing a “low-altitude economy” centered on drones and electric vertical take-off and landing (eVTOL) aircraft, with Guangdong province leading the push.

Companies like EHang, DJI, SF Express’s Phoenix Wings, and XPENG are pioneering drone deliveries, sightseeing services, and flying taxis, supported by government incentives and infrastructure expansion.

In 2023, low-altitude operations generated $70 billion, and projections suggest growth to $490 billion by 2035, though airspace restrictions, uneven access, and safety concerns remain challenges.

Shenzhen and other cities are offering prizes, certifications, and flight stations to accelerate commercial eVTOL operations, while military-controlled airspace is gradually being opened for civilian use, the Express reported.

Analysts expect tourism and industrial applications to precede passenger flying taxis, with China leveraging strong government coordination and technological expertise to dominate the sector despite late entry.