Key Points
- The Civil Aviation Administration of China (CAAC) has merged three committees into a single, powerful new entity: the General Aviation and Low-Altitude Economy Working Group, signaling a top-level national priority for China’s low-altitude economy.
- This consolidation aims to streamline decision-making and accelerate the implementation of applications like drone logistics and urban air mobility (UAM).
- Analysts note a significant shift from policy planning to practical implementation in 2025, focusing on actual route planning, airspace division, and low-altitude flight management regulations.
- The primary focus for real-world breakthroughs in 2025 will be on low-altitude safety and the initial rollout of cargo drones.
- The low-altitude economy was mentioned for the first time in the annual government work report in March 2024, appearing again in March 2025, signifying its growing importance as a new growth engine.
China’s low-altitude economy is officially moving from a buzzword to a top-level national priority, and the latest government shake-up is the clearest sign yet that things are about to accelerate.
In a major consolidation effort, the Civil Aviation Administration of China (CAAC), (Minhang Ju 民航局) just streamlined three separate committees into a single, powerful new entity: the General Aviation and Low-Altitude Economy Working Group.
This isn’t just bureaucratic shuffling.
It’s a signal that Beijing is clearing the runway for a new era of aviation, with drone logistics, urban air mobility (UAM), and other “low-altitude” applications at the forefront.
Key Takeaways: What You Need to Know
- One Group to Rule Them All: The CAAC merged three groups into one unified “General Aviation and Low-Altitude Economy Working Group” to speed up decision-making and implementation.
- Focus on Action: The new group’s mandate is to solve real-world problems, from inter-departmental roadblocks to regional coordination challenges. No more sitting on the sidelines.
- From Planning to Practice: Analysts note a major shift from writing policy documents last year to practical implementation this year—think actual route planning and airspace division.
- The 2025 Focus: The smart money is on two key areas seeing the first real-world breakthroughs this year: low-altitude safety and the initial rollout of cargo drones.
- Investment Angle: After a period of stagnation, the sector is considered a “low-lying” area prime for a rebound as concrete policies and applications come online.
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The Nitty-Gritty: What This New Super-Group Will Do
So, what’s on the new working group’s to-do list?
Their main job is to identify and push forward the key projects that will build out China’s low-altitude economy.
This means tackling the hard stuff, like coordinating between different government departments and regions to get things done.
To make it happen, the CAAC has also set up a Leading Group Office and six special working groups to handle the details.
Their focus areas are crystal clear:
- Crafting comprehensive industry plans.
- Streamlining airworthiness certification for new types of aircraft (like eVTOLs and drones).
- Establishing clear market regulations.
- Overseeing flight operations and safety.
- Building out flight service and support infrastructure.
- Creating a centralized flight service dispatch platform.
- Developing a robust safety regulatory system to keep everything in check.
Why This Move is a Game-Changer
Top-level design is the essential scaffolding for any new, complex industry. Without it, you get chaos.
According to research from major brokerage firms, this move is exactly the kind of top-down push the industry needed.
Huachuang Securities (Huachuang Zhengquan 华创证券) points out that the low-altitude economy is a prime example of China’s push for “new quality productive forces.”
They see this new working group as a signal that the government isn’t just talking—it’s building the mechanisms to ensure these plans are actually executed.
Meanwhile, Huafu Securities (Huafu Zhengquan 华福证券) highlights the shift in focus for 2025.
They note that local governments are no longer just publishing vague plans.
Now, they’re getting into the weeds of:
- Practical route planning for drones and other low-flying aircraft.
- Detailed airspace division.
- Creating concrete low-altitude flight management regulations.
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A Quick Look Back: The Policy Momentum
This didn’t happen overnight. Beijing has been laying the groundwork for over a year, with the low-altitude economy getting mentions in the highest levels of government.
- March 2024: The low-altitude economy gets its first-ever mention in the annual government work report, listed alongside bio-manufacturing and commercial aerospace as a “new growth engine.”
- December 2024: A key document issued by the Central Committee proposes to “deepen low-altitude airspace management reform” and explicitly calls for the development of “general aviation and the low-altitude economy.”
- March 2025: The government work report mentions the low-altitude economy for the second year in a row, this time calling to “promote the safe and healthy development” of the industry through large-scale application demos.
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The Investor Angle: Is It Time to Pay Attention?
According to Huafu Securities (Huafu Zhengquan 华福证券), the low-altitude economy sector has been in a holding pattern, experiencing a series of “quantitative changes” while waiting for a major “qualitative change” to kick things into high gear.
The sector has largely been stagnant, making it a potential value play poised for a rebound as these top-down policies translate into real-world action.
This Year’s Big Bet: Cargo Drones Take the Lead
The focus for this year is simple and practical: low-altitude safety and the initial implementation of cargo drones.
If these policy tailwinds continue, drones are expected to evolve from a supporting role in logistics to becoming the “leading protagonist” in their own massive market.
Think automated package delivery, medical supply transport, and industrial logistics, all happening in the sky above.
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Drone Manufacturers: Companies building the hardware.
- Vertuosi (Zongheng Gufen 纵横股份)
- Lv Neng Huichong (绿能慧充)
- Wanfeng Aowei (万丰奥威)
-
Low-Altitude Safety: Tech for managing and monitoring skies (radar, anti-drone systems).
- Sinokor (Xinjingang 新劲刚)
- Narui Radar (Naruilei da 纳睿雷达)
- Guorui Technology (Guorui Keji 国睿科技)
- Sichuang Electronics (Sichuang Dianzi 四创电子)
-
Testing and Verification: Third-party firms certifying aircraft and systems safety.
- GRG Metrology & Test (Guangdian Jiliang 广电计量)
- CITIC Certified Inspection (Zhongji Renjian 中机认检)
- Xice Testing (Xice Ceshi 西测测试)
3 Investment Areas to Watch
For investors and tech watchers, analysts are pointing to three main segments of the value chain:
- Drone Manufacturers: The companies actually building the hardware.
Companies to watch: Vertuosi (Zongheng Gufen 纵横股份), Lv Neng Huichong (绿能慧充), Wanfeng Aowei (万丰奥威). - Low-Altitude Safety: The tech needed to manage and monitor the skies, from radar to anti-drone systems.
Companies to watch: Sinokor (Xinjingang 新劲刚), Narui Radar (Naruilei da 纳睿雷达), Guorui Technology (Guorui Keji 国睿科技), Sichuang Electronics (Sichuang Dianzi 四创电子). - Testing and Verification: The crucial third-party firms that certify the safety and reliability of the aircraft and systems.
Companies to watch: GRG Metrology & Test (Guangdian Jiliang 广电计量), CITIC Certified Inspection (Zhongji Renjian 中机认检), Xice Testing (Xice Ceshi 西测测试).
The consolidation of the CAAC’s working groups is more than just a headline—it’s a critical step in turning the ambitious vision for China’s low-altitude economy into a scalable, regulated, and commercially viable reality.
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