1、 What is low altitude economy

Low altitude economy refers to a comprehensive economic form that is driven by the low altitude flight activities of manned and unmanned aerial vehicles in the low altitude airspace (usually referring to airspace with an altitude below 1000 meters), radiating and driving the development of infrastructure construction, operation, flight support, and derivative comprehensive services related to aircraft research and development, production, sales, and low altitude flight activities.

The application scenarios of low altitude economy include logistics distribution, emergency rescue, surveying and mapping, agricultural and forestry operations, tourism and sightseeing, etc. The participating entities include aviation enterprises, research institutions, government departments, etc., and promote the construction and development of low altitude economic ecology through collaborative cooperation.

2、 Why develop low altitude economy

From an economic perspective, the low altitude economy is a new growth engine that can drive the development of related industries and create a large number of job opportunities. The manufacturing of low altitude aircraft can drive upstream and downstream industries such as machinery, electronics, and materials, forming a huge industrial cluster. The construction of low altitude economic infrastructure can digest overcapacity in building materials and alleviate the weakness of the construction industry caused by the decline in the real estate market. From a social perspective, the low altitude economy greatly enhances the level of public services. During emergency rescue, helicopters and drones can quickly arrive at the scene, racing against time to save lives and reduce losses; In logistics delivery, drones can overcome the pain point of traffic congestion faced by most first - and second tier cities and achieve efficient delivery. From the perspective of technological development, the development of low altitude economy promotes continuous innovation and breakthroughs in key technologies, such as navigation and communication, intelligent control, etc. Technological progress is not only applied in the aviation field, but also empowers other industries, promotes overall technological level improvement, and helps industrial transformation and upgrading.

In 2024, the concept of "low altitude economy" was first included in the State Council's Government Work Report, which clearly stated the need to "actively build new growth engines such as biomanufacturing, commercial aerospace, and low altitude economy". China's low altitude economy has entered a stage of rapid development. The scale of low altitude economy will reach 67025 billion yuan in 2024, an increase of 32.5% compared to 2023. It is expected that the scale of China's low altitude economy industry will reach 1.5 trillion yuan by 2025.

3、 The legislative status quo of China's low altitude economy

The basic framework for legislation at the central level has been initially established, but the level is relatively low and the coverage is limited

The legal framework for China's low altitude economy is centered around the Civil Aviation Law of the People's Republic of China, supplemented by administrative regulations, departmental rules, and normative documents.

Article 74 of the revised draft of the Civil Aviation Law, released on February 25, 2025, proposes for the first time at the legislative level that airspace division should take into account the needs of low altitude economy, providing legislative support for the division of airspace for the development of low altitude economy.

The General Aviation Flight Control Regulations, issued in January 2003 and implemented in May 2003, promote the development of general aviation, regulate general aviation flight activities, ensure flight safety, and maintain the order of national airspace management.

The Interim Regulations on the Management of Unmanned Aerial Vehicle Flights, released in May 2023 and implemented in January 2024, are the first administrative regulations that comprehensively regulate unmanned aerial vehicle flights. They establish a full chain management system for unmanned aerial vehicle production, sales, and flight activities, and clarify the responsibilities of each department.

The Civil Aviation Administration of China issued the "Interim Measures for the Management of Commercial Flight Activities of Civil Unmanned Aerial Vehicles" in March 2018 and implemented it in June 2018. It is explicitly stipulated that within the territory of the People's Republic of China (excluding Hong Kong, Macao, and Taiwan), commercial activities including performance flights must obtain corresponding operating licenses for unmanned aerial vehicles with a maximum air weight of not less than 250 grams. Corresponding regulations have also been made regarding the application requirements for unmanned aerial vehicles.

The "Civil Unmanned Aerial Vehicle Operation Safety Management Rules" implemented by the Ministry of Transport in January 2024 standardize the operational environment, flight operation standards, personnel qualification requirements, emergency response measures, and other operational aspects of unmanned aerial vehicles, providing detailed technical and operational specifications for the safe operation of unmanned aerial vehicles in low altitude economy.

The Ministry of Industry and Information Technology issued and implemented the "Several Regulations on the Production Management of Civil Unmanned Aerial Vehicles" in January 2024, further refining the management requirements for the production process of civil unmanned aerial vehicles. In terms of production permits, the conditions, procedures, and approval requirements for enterprises to apply for production permits have been clarified to ensure that unmanned aerial vehicle production enterprises entering the market have the corresponding production capacity and technical level; In terms of product quality control, quality control measures have been established for enterprises in raw material procurement, production process control, product inspection and testing, etc., to promote the healthy and orderly development of the civil unmanned aerial vehicle industry.

The "Safety Requirements for Civil Unmanned Aerial Vehicle Systems" GB 42590-2023 will be released in May 2023 and implemented in June 2024, which sets safety requirements for key technical indicators such as structural strength, power system, flight control system, and communication system of unmanned aerial vehicles to ensure that they meet the technical standards for safe flight in design and manufacturing.

2. Active exploration of special legislation at the local level

The Interim Measures for Promoting the Development of Low altitude Tourism in Sanya City, which will be implemented in September 2023, focus on tourism scenarios, standardize the approval and safety guarantee of low altitude sightseeing activities.

The "Regulations on the Promotion of Low altitude Economy Industry in Shenzhen Special Economic Zone" implemented in February 2024 is China's first special regulation on low altitude economy, covering the entire chain of infrastructure, flight services, industrial applications, safety supervision, etc., and for the first time defining the concept of "low altitude economy" in legal form.

The "Regulations on the Construction and Management of Low altitude Traffic in Zhuhai Special Economic Zone" to be implemented in January 2025 focus on the construction and management of low altitude traffic, ensuring the safe and orderly operation of low altitude flights.

The Guangzhou Low altitude Economic Development Regulations, which will be implemented in February 2025, explore airspace coordination and data compliance supervision.

4、 The current problems in legislation for low altitude economy

1. There are still significant shortcomings in central legislation

Low legislative hierarchy: Most normative documents are administrative regulations or departmental rules, lacking higher-level legal support and insufficient authority.

Fragmentation of regulation: cross management of multiple departments such as transportation, industry and information technology, and military, with blurred boundaries of rights and responsibilities, has resulted in complex and inefficient approval processes.

Technical specifications are relatively outdated and safety standards are lacking: existing regulations mainly target traditional general aircraft, and specific standard specifications for new technology aircraft such as eVTOL (electric vertical takeoff and landing aircraft) and drone swarms are still insufficient. In most airworthiness certifications, the "one case, one discussion" model is still adopted. The airworthiness certification system is not perfect, and some companies neglect technical verification in order to seize the market, causing safety hazards. In 2024, a company's unverified test flight of eVTOL resulted in an accident, exposing regulatory loopholes.

2. Although local legislation has filled some of the gaps in central legislation, there are prominent issues as follows:

Low legal hierarchy: Policy documents related to low altitude economy in various regions mostly appear in the form of plans, measures, schedules, etc., and there are relatively few cases of them rising to the form of specialized legal documents with universal binding force. This makes the authority and stability of relevant regulations insufficient, making it difficult to comprehensively and systematically regulate various relationships and behaviors in the development of low altitude economy.

Fragmentation of policies: Normative documents in various regions often focus on a certain aspect and lack coordination with other related industrial policies, making it difficult to form an overall advantage for industrial development. The lack of unified rules for cross regional flights seriously hinders cross regional flights and is not conducive to the formation of a unified national market.

Lack of supporting measures: Some local normative documents have vague provisions on key issues such as employee qualifications and environmental impact assessments, and lack operability.

5、 Suggestions for Improving the Legislation of Low altitude Economy in China

1. Build a complete legal system

Develop a specialized "Low altitude Economy Promotion Law" to clarify the legal status, development goals, basic principles, management system, and other major issues of low altitude economy, providing a top-level legal framework for the development of low altitude economy. Formulate the Low Altitude Airspace Management Law, emphasizing the clarification of core issues such as airspace classification, flight approval process, and safety responsibility division through legislation. By enacting these two pieces of legislation, we aim to address issues such as fragmented regulations and overlapping departmental responsibilities, filling systemic legal gaps.

On the basis of the Low Altitude Economic Promotion Law and the Low Altitude Airspace Management Law, further improve relevant supporting regulations and rules, covering a complete legal system in various aspects such as airspace control, infrastructure construction, low altitude aircraft manufacturing, flight support, operation services, and safety supervision. Developing relevant regulations for the airworthiness management of low altitude aircraft, clarifying the airworthiness standards and certification procedures for aircraft; Issuing relevant management measures for low altitude operation services, standardizing the qualification conditions, market access, service quality, and corresponding exit mechanisms for low altitude operation enterprises.

2. Clarify the legal responsibilities of all parties involved

In low altitude economic activities, there are multiple entities involved, including infrastructure construction and operation parties, aircraft manufacturers, airspace management departments, flight operators, regulatory agencies, etc. It is crucial to clarify the legal responsibilities of each entity. For infrastructure construction and operation parties, they should bear the main responsibility for safety in accordance with the law, be responsible for the daily maintenance, upkeep, and operation management of infrastructure, ensure that it is in good operating condition, and guarantee the safety and smoothness of low altitude flight activities. For aircraft manufacturers, they should bear product quality responsibility and ensure that the aircraft produced comply with relevant safety standards and technical specifications. If accidents occur due to product quality issues, they should be liable for compensation in accordance with the law. The airspace management department shall fulfill its responsibilities such as airspace planning and approval in accordance with the law. Flight controllers are responsible for their own flight behavior and must strictly follow their qualification level and authorized scope for flight operations. Regulatory agencies should effectively fulfill their regulatory responsibilities and promptly investigate and punish illegal and irregular behaviors.

3. Legislation to promote industrial development

Under the strict control of aircraft quality and flight safety, relatively relaxed regulations and policies are introduced to provide more opportunities for enterprises to participate in the low altitude economy. Through tax incentives, fiscal subsidies, credit support and other means, social capital is guided to invest in the low altitude economy field, and low altitude economy enterprises are cultivated and strengthened. Provide a certain period of tax relief to enterprises engaged in the research and manufacturing of low altitude aircraft; Provide financial subsidies to enterprises providing low altitude operation services to reduce operating costs. Introduce policies to encourage insurance companies to introduce low altitude economic insurance, such as third-party liability insurance for unmanned aerial vehicles, aircraft loss insurance, etc., to mitigate the risks of low altitude economic enterprises and personnel, and enhance fairness and confidence.

4. Strengthen legislation on safety supervision

Safety is the lifeline of low altitude economic development, and it is necessary to strengthen safety supervision through sound legislation. Strengthen the full process supervision of safety related activities in low altitude economic activities, including pre qualification review, flight plan approval, real-time monitoring, on-site inspection, and post accident investigation and handling. Further refine low altitude flight safety standards and develop specific safety indicators and operational specifications covering aircraft performance, flight environment, personnel qualifications, and other aspects. Establish a sound safety supervision system, clarify the division of responsibilities among regulatory departments, strengthen collaboration and cooperation among departments, and form a regulatory synergy. Intensify the punishment for illegal and irregular behaviors related to safety, increase the cost of illegal activities, and form an effective legal deterrent. While strengthening supervision, it is also necessary to clarify and coordinate the scope of regulatory responsibilities, in order to avoid excessive, repetitive, and cumbersome supervision that may interfere with the operation of the low altitude economy and have a negative impact on its development.

6、 Conclusion

Low altitude economy, as a new track for China's economic development, has enormous development potential and broad market prospects. To achieve sustained, healthy, and high-quality development of the low altitude economy, it is inseparable from the guarantee of sound laws, regulations, and other systems. By establishing a complete legal system, clarifying the legal responsibilities of all parties, promoting industrial development legislation, strengthening safety supervision legislation and other measures, we will continuously improve the legal system of China's low altitude economy, create a favorable legal environment for the development of low altitude economy, stimulate market vitality, ensure flight safety, and promote the coordinated development of various industries in low altitude economy. In the future development process of low altitude economy, we should also closely monitor the new problems and demands that arise in the development of low altitude economy, adjust and improve the legal system in a timely manner, in order to adapt to the constantly changing situation of low altitude economy development.