China’s Low-Altitude Economy: Theoretical Foundations, Development Status, and Policy Directions

Wang Shusen*, Xing Gan

School of Applied Economics, University of Chinese Academy of Social Sciences (UCASS), Beijing, China

Abstract: This paper delves into the evolution and defining traits of China’s “low-altitude” economy and spotlights the powerful “triple engines” fueling its rise: Groundbreaking technological advancements, strategic policy support, and robust capital investment. However, despite its promise, the low-altitude sector grapples with significant hurdles, such as the risk of external coercive technological containment and sanctions, nonstandardized and underdeveloped infrastructure, untested business models, limited public acceptance, and lagging regulatory frameworks. Grounded in industrial ecosystem theory, this study analyzes the development model and real-world challenges of the low-altitude economy and argues that the seamless fusion of technological and industrial innovation is the linchpin for overcoming these obstacles. We propose bold policy recommendations across four key pillars: Amplifying pilot city initiatives, nurturing innovative enterprises and talent, fortifying regulatory and governance systems, and broadening international collaboration. By blending theoretical insight with actionable solutions, these strategies offer a clear and practical roadmap to propel the low-altitude economy toward a thriving, sustainable future.

Keywords: Low-altitude economy; Technological innovation; Industrial innovation; New

JEL Classification Codes: O53; O31; O38

DOI: 10.19602/j.chinaeconomist.2025.11.03