MK sports Korea Land Aircraft Carrier, the flying car developed by Chinese electric vehicle maker XPENG, completed its first public flight in Haikou, South China's Hainan Province on January 21, 2025. The Civil Aviation Administration of China estimates that the country's low-altitude market will soar from 500 billion yuan ($68.36 billion) in 2023 to 1.5 trillion yuan in 2025 and as much as 3.5 trillion yuan in 2035. Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-02-16/dfe51746-03e4-4c73-a61e-96520f444bf0.png" />

The "Land Aircraft Carrier," the flying car developed by Chinese electric vehicle maker XPENG, completed its first public flight in Haikou, South China's Hainan Province on January 21, 2025. The Civil Aviation Administration of China estimates that the country's low-altitude market will soar from 500 billion yuan ($68.36 billion) in 2023 to 1.5 trillion yuan in 2025 and as much as 3.5 trillion yuan in 2035. Photo: VCG

Hainan, China's southernmost tropical island province, has announced a draft proposal of major supportive measures to boost the low-altitude economy in the province, according to a report on the provincial government's website on Sunday.  

The province is mulling 18 measures to promote the high-quality development of general aviation and the low-altitude economy, according to the report from Hainan Daily.

Among the draft measures, which are open for public input until March 16, the provincial government pledged to offer financial support of up to 20 percent of the costs of specialized general-purpose aviation facilities at transport airports and public takeoff and landing sites if these were built by social capital. For signals, navigation and monitoring facilities, the government can offer support of up to 50 percent of the project costs after the projects are completed by social capital.

General-purpose aviation and low-altitude companies can also enjoy tariff benefits, the draft proposal noted. The proposal also encourages funds to be set up and financing measures such as issuing corporate bonds to be employed to boost financing for developing general aviation and the low-altitude economy.

The move is one of the latest steps the province has taken to develop its low-altitude economy, after it announced in November an ambitious three-year action plan that aims to attract and cultivate 200 enterprises related to the low-altitude economy's industrial chain, and achieve an industry scale of 30 billion yuan ($4.14 billion) by 2026.

The plan outlined the construction of nine general-purpose airports and the establishment of 500 takeoff and landing sites for low-altitude aircraft. 

Liang Haiming, dean of Hainan University Belt and Road Research Institute, told the Global Times on Sunday that along with the rollout of measures and support policies, the low-altitude economy at the Hainan Free Trade Port could take off in 2025.

In the areas of drones, electric vertical takeoff and landing (eVTOL) aircraft, low-altitude logistics and low-altitude tourism, support policies are expected to continue to push Hainan to the forefront of low-altitude economic development, Liang said. "The sea is a particular advantage for the island province as it offers great space to conduct drone-based logistics runs and air taxi operations."

Aki Wang, a manager with the Boao Innovative Development Center, told the Global Times on Sunday that developing the low-altitude economy in Hainan can tap into the many tourism-related scenarios as well as the perceived spillover effect from the Wenchang Spacecraft Launch Site.

In-depth interaction and coordination can be expected between resources from the space sector and the low-altitude sector, such as in air space management and new materials, Wang said. 

Hainan's move comes as many Chinese localities are pursuing deployment of the low-altitude economy to capitalize on the broader momentum of China's rapidly expanding low-altitude sector.

On February 12, Wuxi in East China's Jiangsu Province set up a fund of 2 billion yuan to invest in projects and companies associated with new quality productive forces, including the low-altitude economy, space and the aviation industrial supply chain, per a Securities Times report on Friday.

Guangzhou, capital of South China's Guangdong Province, has formed a company led by state capital specifically to lead the coordinated development of the low-altitude economy. 

Luo Jun, executive director of the China Low Altitude Economic Alliance, told the Global Times on Sunday that it is vital that localities' low-altitude air transportation networks have unified standards and interfaces, and achieve connectivity as localities ramp up the construction of low-altitude infrastructure and supporting facilities.

Luo said that solid work and coordination are needed in industrial planning, as well as infrastructure improvement to fully prepare for the next step of comprehensive application of the low-altitude economy, which can be used to promote industrial development.

The Civil Aviation Administration of China estimates that the country's low-altitude market will soar from 500 billion yuan in 2023 to 1.5 trillion yuan in 2025 and as much as 3.5 trillion yuan in 2035, according to a Xinhua News Agency report.