China Forms Low Altitude Economic Alliance.
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In a significant development for China's rapidly growing low-altitude economy, over 100 Chinese companies and research institutions have joined forces to form the China Low Altitude Economic Alliance. Officially established in Beijing in August 2024, the alliance aims to promote developing and implementing the low-altitude economy across cities in mainland China. The Chinese government, both at the central and local levels, is heavily promoting the development of the low-altitude economy.
China's low-altitude economy refers to the burgeoning industry centered around low-flying vehicles such as drones, flying cars, air taxis, and other manned and unmanned aircraft.
The low-altitude economy has diverse commercial, industrial, civil, and military applications, including Short-distance passenger transportation, Emergency medical services, Aerial photography, and mapping.
The China Low Altitude Economic Alliance
The alliance aims to advance China's low-altitude economy by discussing operating scenarios, airspace opening, and industrial development routes. Given the sector's nascent stage, Luo Jun, the alliance's executive director, emphasized its role in guiding industry standards and improving infrastructure. A conference scheduled for mid-October in Beijing will address over 20 topics, including business models and regulatory rules. Some of the goals the alliance hopes to accomplish include the following
Collaboration and partnerships: Members can engage with a diverse network of over 100 upstream and downstream enterprises, enabling valuable knowledge sharing and potential partnerships to drive innovation.
Shaping industry standards: Companies can provide input to assist government departments in formulating industry standards for low-altitude applications and approvals, helping create a more conducive regulatory environment.
Infrastructure development: The alliance focuses on improving facilities and infrastructure related to low-altitude flights, enabling companies to benefit from the development of necessary systems and physical infrastructure for efficient operations.
Exploring new markets: By working with hotspot cities to create replicable application scenarios, member companies can explore new use cases, markets, and business models in urban environments.
Networking and Industry Exposure
Joining the alliance provides access to a wide network of industry players, government stakeholders, and research institutions, leading to valuable connections, partnerships, and increased exposure within the sector.
Participating in Key Industry Events
Members can participate in and contribute to discussions at major conferences, such as the upcoming event in October 2024, which will focus on over 20 industry topics. They can gain insights and shape the future direction of the low-altitude economy. By joining forces through the China Low Altitude Economic Alliance, companies can better navigate the challenges and opportunities of this nascent sector while contributing to its healthy development and growth in the coming years.
An upcoming conference in mid-October will address over 20 topics crucial to the sector's development, including business models, air safety, and regulatory rules.
Recent Milestones and Developments
China's low-altitude economy has achieved several notable milestones in recent years. By the end of August 2023, China had over 1.11 million registered civilian drones (up 16% from 2022) and over 17,000 registered drone operating enterprises.
In August 2024, engineers conducted test flights of China's largest cargo drone to date, while a helicopter air taxi also took to the skies on a soon-to-open low-altitude flight network. Leading companies like JD.com, SF Express, Meituan, and others are ramping up the development of large-scale logistics drones to build aerial delivery networks.
Leading Companies in the Alliance
These companies are leading the China Low Altitude Economic Alliance:
- Aerofugia: This flying taxi startup is mentioned as one of the primary initiators of the alliance.
- TCab Tech: An electric vertical take-off and landing (eVTOL) player, TCab Tech is also listed as one of the main companies establishing the alliance.
- Volant: Another company mentioned as a key initiator of the alliance.
- China Post: The state-owned postal service is among the leading members of the alliance.
- Civil Aviation Flight University of China: This educational institution is listed as one of the primary initiators.
- Nanchang Hangkong University: Another educational institution involved in establishing the alliance.
- China Youth Travel Service: This travel service company is mentioned as one of the key initiators.
While not explicitly stated as leaders, other notable companies involved in China's low-altitude economy sector include:
- Phoenix Wings: A cargo drone firm part of delivery giant SF Express.
- Sichuan Tengden Sci-tech Innovation Co.: Developer of China's largest cargo drone.
- Aviation Industry Corp of China (AVIC): A state-owned aerospace enterprise developing cargo drones.
These companies represent a mix of startups, established corporations, educational institutions, and state-owned enterprises, reflecting the diverse players involved in China's emerging low-altitude economy.
Forming the Low Altitude Economic Alliance is the latest step in China's push to become a global leader in this emerging industry. With the sector's rapid growth and strong policy tailwinds, the investment outlook appears bright for China's futuristic, low-altitude economy.