context: The 2024–25 government work reports sparked a wave of investments in the low-altitude economy, proposing large-scale demonstration actions for new technologies, products and scenarios. In addition to the challenge posed by military dominance over civilian airspace, the PRC economy battles with involution, caused by overinvestment following central directives. The National Development and Reform Commission formed a low-altitude economy division in December 2024 to ensure interdepartmental coordination to address challenges in the sector.
According to Caixin, an NDRC (National Development and Reform Commission) meeting on the low-attitude economy on 18 Jul 2025 highlights that the sector should prevent inefficient, redundant construction and unhealthy competition within the industry.
Local authorities were urged to develop the low-altitude economy based on local realities, avoiding blind imitation and irrational projects. A directive regulates the development of low-altitude industrial parks and addresses irrational construction behaviours, notes Caixin.
Industry experts note early signs of redundant platform construction for flight service management. An official document from Guangxi Zhuang Autonomous Region (November 2024) highlights the existence of multiple independent systems with overlapping functions, such as
- real-time flight monitoring platforms
- emergency mapping service platforms
- modern air traffic management systems
There are already signs of redundant construction of flight service management platforms; the Guangxi official document confirms that these platforms have concentrated service areas and that similar systems are scattered, leading to duplication, says an unnamed industry research institute representative.
There is indeed a bubble in the current low-altitude industry, as many localities are rushing to launch projects in pursuit of investment, says an aircraft manufacturer executive. Caixin notes that the sector remains at an early stage, with most projects serving demonstration rather than commercial purposes.
Due to the lack of practical application scenarios, many locally built service management platforms have limited real-world effectiveness, according to an anonymous state-owned low-altitude operations company executive. The low-altitude economy should develop from the ground up, starting with feasible application scenarios, then followed by policy support, experience accumulation, and scenario expansion; right now, many places are doing things the other way around, notes the executive.