Innovation and Implementation Effect Analysis of the First Low altitude Economic Regulation in China

2025 06/18
With the rapid development of emerging fields such as drone technology and urban air traffic (UAM), the low altitude economy, as a new economic form that integrates advanced manufacturing, intelligent transportation, and digital economy, has become a new track for global urban competition. As the forefront of China's reform and opening up, Shenzhen has taken the lead in establishing a legal framework for the development of low altitude economy through local legislation, providing replicable experience for the whole country. This article takes the first low altitude economy regulation in China, the "Shenzhen Special Economic Zone Low altitude Economy Industry Promotion Regulations" [1] (hereinafter referred to as the "Regulations"), as the core, and other low altitude economy related laws as auxiliary, analyzing the institutional innovation, practical effectiveness, and challenges faced by Shenzhen.

1、 Background and positioning of legislation on low altitude economy in Shenzhen

(1) Dual drive of national strategy and local demand

Shenzhen takes legislation as a lever to respond quickly and deeply to national policies, ensuring the effective implementation of national policies at the local level through institutional arrangements. Since the release of the Guiding Opinions on Promoting the Development of General Aviation Industry by the State Council in 2016, low altitude economy has been included in the national comprehensive three-dimensional transportation network planning. In 2022, the National Development and Reform Commission and the Ministry of Commerce issued the "Opinions of the National Development and Reform Commission and the Ministry of Commerce on Several Special Measures for Relaxing Market Access in Shenzhen's Construction of a Leading Demonstration Zone for Socialism with Chinese Characteristics", which clearly supports Shenzhen's pioneering efforts in the field of low altitude economy and requires the construction of access standards and open application platforms for all space unmanned systems. In this context, as a comprehensive demonstration zone for the national general aviation industry and a pilot zone for civil unmanned aerial vehicles, Shenzhen urgently needs to address issues such as airspace management, infrastructure construction, and safety supervision through legislation.

(2) The practical needs of industrial development and urban governance

The low altitude economy industry in Shenzhen has formed significant advantages. As of November 2024, there are over 5000 registered enterprises related to the low altitude economy industry in Shenzhen, including more than 1700 core enterprises in the industry chain. It has cultivated a number of leading enterprises such as DJI, Daotong Intelligence, Fengyi Technology, Eastern Navigation, and Meituan UAV. A number of industry leaders such as Fengfei, Zhuoyi Intelligence, and Volant have successively settled in Shenzhen. Shenzhen has formed a complete industrial chain that integrates research and development, manufacturing, application, and service. Shenzhen ranks first in the world in terms of consumer and industrial drone production. As of June 12, 2025, it has opened nearly 300 drone routes and completed over 1.7 million cargo flights. However, the traditional airspace management model (such as cumbersome flight approval processes and insufficient infrastructure) seriously restricts the large-scale development of the industry. The promulgation of the Regulation aims to create a "safe, controllable, open and shared" low altitude operating environment through institutional innovation, and promote the landing of scenarios such as drone logistics, air commuting, and emergency rescue.

2、 Institutional innovation of legislation on low altitude economy in Shenzhen

(1) Breakthrough Design of Collaborative Management Mechanism

1. Coordination mechanism of dual wheel drive

The Regulation innovatively establishes a dual track governance structure of "industrial development coordination mechanism" and "low altitude flight collaborative management mechanism". The former is led by the Municipal Bureau of Industry and Information Technology, which coordinates industrial policies, technological innovation, and industrial chain cultivation; The latter is led by the Municipal Transportation Bureau, in conjunction with air traffic control agencies and civil aviation departments to establish a military civilian coordination platform, responsible for core affairs such as airspace delineation and flight supervision. This dual track system of "industry promotion+operation management" effectively integrates the cultivation of development momentum and the construction of order norms, providing a flexible and stable institutional support for high-quality industrial development.

2. Deep application of digital governance tools

Shenzhen has built the world's first city level low altitude intelligent fusion system (SILAS), integrating CIM city information models and global intelligent computing resources to achieve refined management of low altitude four-dimensional data fields. Through this system, drones can obtain real-time airspace status and meteorological information, and automatically generate flight plans, greatly improving operational efficiency. The Shenzhen Airport Low altitude Operations Management Center, relying on SILAS, has achieved the integration of high and low altitude operations of drones and civil aviation flights, and completed the first domestic airport drone cross city and cross sea transportation test in June 2024.

(2) Refined reform of airspace management

1. Hierarchical classification of airspace delineation

The Opinion on Deepening the Reform of Low altitude Airspace Management in China divides low altitude airspace into three categories: control, monitoring, and reporting, and explores dynamic adjustment mechanisms. Shenzhen has opened up airspace below 120 meters for drone logistics and distribution in low altitude economic pilot zones such as Bao'an and Guangming, while strict flight restrictions have been implemented in the core business district.

2. Combining simplified approval with long-term filing

The Regulation allows for the application of long-term flight permits for regular flights within fixed airspace, without the need for separate approval each time; Special tasks such as emergency rescue and medical aid will be declared immediately. This innovation has shortened the approval time for drone logistics routes for a certain drone company from 7 days to 2 hours, achieving 776000 cargo flights by 2024 and improving delivery efficiency by 30%.

(3) Systematic construction of infrastructure and industrial ecology

1. Infrastructure network involving multiple stakeholders

The Regulation encourages the installation of low altitude physical infrastructure in islands, hospitals, schools, sports stadiums, urban core business districts, high-rise buildings, transportation hubs, tourist attractions, etc. that meet the requirements. As of the end of 2024, Shenzhen has built 483 take-off and landing points of various types [8], among which SF Express Bao'an Low altitude Smart Logistics Operation Center adopts the "rooftop take-off and landing+ground sorting" mode, achieving 2-hour delivery for local express delivery and 3-hour delivery across cities. [5]

2. Full chain industrial support system

Shenzhen has established a 2 billion yuan industrial fund to provide special subsidies for drone research and development, airworthiness certification, and promote the establishment of a comprehensive application testing base for unmanned aerial vehicles. Meituan's unmanned aerial vehicles have obtained the approval letter for the trial operation of specific types of unmanned aerial vehicles in Shenzhen, and its distribution network has covered core areas such as Nanshan and Futian.

(4) Innovative exploration of risk prevention and insurance mechanisms

1. Combination of mandatory liability insurance and commercial insurance

The Interim Regulations on the Management of Unmanned Aerial Vehicle Flight require commercial drones to purchase third-party liability insurance, and encourage non-commercial flights to purchase commercial insurance. In May 2024, Shenzhen released the country's first demonstration clause for third-party liability insurance for unmanned aerial vehicles, which includes privacy infringement, mental damage, and other protection areas, providing standardized risk solutions for the industry.

2. Full process safety supervision system

Establish a joint supervision system for low altitude flights, and public security organs may take technical countermeasures against illegal flights. The Shenzhen public security department uses the "Shenqiong" platform to coordinate and allocate resources, explore the establishment of a normalized control pattern that combines air and land, management and release, multi-party collaboration, and information support. As of November 2024, Shenzhen has held 174 drone performances, far exceeding the total number in 2023, and there have been no major safety accidents. [6]

3、 The practical effectiveness of legislation on low altitude economy in Shenzhen

(1) Significant improvement in industrial scale and innovation capability

Since the implementation of the Regulation one year ago, Shenzhen's low altitude economic output value has exceeded 90 billion yuan, and there have been 28000 manned helicopter flights. Enterprises such as DJI and Yihang have made breakthroughs in the fields of unmanned aerial vehicle airworthiness certification and electric vertical takeoff and landing vehicles (eVTOL). Among them, Yihang EH216-S has become the world's first manned unmanned aerial vehicle to obtain airworthiness certification from the Civil Aviation Administration of China, with a record high delivery volume in 2025.

(2) Continuous expansion of application scenarios and service capabilities

Logistics distribution: By 2024, Shenzhen will have opened a total of 250 drone logistics routes (including 5 cross city routes), with over 776000 drone cargo flights.

Urban governance: Shenzhen Public Security relies on drones to build a "five in one" security patrol system, with 149 aerial patrol sections set up daily and a total of 51000 drone patrols conducted, covering scenarios such as traffic diversion and illegal construction inspections. [9]

Emergency rescue: Shenzhen has established an integrated emergency rescue network of "air space". By 2024, Shenzhen will open 16 unmanned aerial vehicle blood transportation routes, with a total of 7070 flights, transporting blood types including red blood cells, platelets, cryoprecipitate, etc. The total weight of blood transportation will reach 4412 kilograms. [10]

(3) Enhanced international influence and standard discourse power

Shenzhen actively participates in the formulation of international rules and promotes the alignment of low altitude economic standards with international standards. In 2024, Shenzhen will lead the development of 18 local standards, including the "Civil Unmanned Aerial Vehicle Route Setting Specification", and cooperate with the European Union and the United States on airworthiness certification, airspace management, and other related matters. In addition, the Shenzhen Low altitude Operation Management Center has integrated with the National Civil Unmanned Aerial Vehicle Comprehensive Management Platform, becoming the first city to achieve city level low altitude data interconnection.

4、 Shenzhen's low altitude economy legislation still faces challenges

(1) Deepening and implementation of regulatory coordination mechanism

Although the Regulation proposes the establishment of a collaborative management mechanism, there are still limitations on departmental responsibilities and airspace management authority in actual operation. Cross border helicopter flights require coordination between airspace management, customs, border inspection and other departments in Shenzhen and Hong Kong. The construction of a low altitude flight service platform involves data docking between multiple departments such as industry and information technology, transportation, and public security, and further clarification of division of labor and cooperation rules is needed.

(2) The balance between refinement and openness in airspace management

The contradiction between the scarcity of airspace resources and diverse application demands (such as logistics, entertainment, emergency) still needs to be resolved. The increasing number of drone logistics operations requires dynamic airspace delineation and intelligent control, which traditional tower control models cannot meet.

(3) Implementation of Data Security and Privacy Protection

The Regulation clarifies the obligations of data security, but in actual supervision, how to define "data involving national security" and "personal privacy data" still needs to be refined. The storage and transmission rules for cross-border flight data are not yet clear, and a mechanism for reviewing the cross-border flow of data needs to be established.

Conclusion

Although the rule of law development of the low altitude economy as an emerging field still needs to be continuously explored, the practice in Shenzhen has proven that through scientific legislation and precise policy implementation, a dynamic balance between security and development can be effectively achieved. The low altitude economic development model of "institutional innovation+technological empowerment+scenario driven" constructed by local legislation in Shenzhen provides valuable experience for low altitude economic legislation in other regions and even across the country.

Comments and references (slide down to view)

[1] The first low altitude economic regulation in the country has been announced and will be implemented from February 1, 2024( https://www.szlhq.gov.cn/bmxxgk/zwfwj/dtxx_124513/gzdt_124514/content/post_11087299.html )

[2] Panoramic Map of Shenzhen's Low altitude Economy Industry Chain in 2024( https://www.163.com/dy/article/JII5D2NM05503O4L.html?spss=dy_author )

[3] Shenzhen's low altitude economy accelerates to new heights( https://jtys.sz.gov.cn/ydmh/jtzx/tpxw_2061/content/post_11481382.html )

[4] Shenzhen takes the lead in formulating the first low altitude economic regulations, and 'flying' may become a reality( https://www.sohu.com/a/904217600_122438197 )

[5] The first "land ground collaborative" smart logistics operation center in China has been officially put into use( https://www.sf-express.com/chn/sc/news/378 )

[6] Guarding the high-quality development of Shenzhen's low altitude economy with the strongest sense of responsibility( https://ga.sz.gov.cn/ZWGK/QT/GZDT_1/content/post_11690221.html )

[7] Investing in Shenzhen | Understanding the Development Status and Investment Opportunities of Shenzhen's Low altitude Economy Industry in One Article( https://www.toutiao.com/article/7489038302352343604/?upstream_biz=doubao&source=m_redirect )

[8] Major events in Shenzhen's low altitude economy in 2024( https://jtys.sz.gov.cn/ydmh/jtzx/tpxw_2061/content/post_11965750.html )

[9] Shenzhen Public Security has created 8 "unmanned aerial vehicle aerial police teams" to create the "low altitude surprise troops" with the latest quality of public security combat effectiveness( https://www.sznews.com/news/content/2024-10/16/content_31274685.htm )

[10] Do you need a first aid kit? Drones are here to deliver! (Improving people's livelihoods around us, improving grassroots governance)( https://www.toutiao.com/article/7491873005853803008/?upstream_biz=doubao&source=m_redirect )
Scan the QR code and follow my video account