Shanghai's low-altitude economy is set for a significant boost with the establishment of Shanghai Low-altitude Economy Industry Development Co Ltd, which is jointly owned by six State-owned enterprises, including the Shanghai East Hongqiao Investment and Development Group.
This venture, backed by a substantial investment of 900 million yuan ($123.3 million), primarily engages in the aviation transportation industry. It will focus on building primary hubs, main air routes, and key nodes, leveraging social capital investments to enhance the industrial ecosystem.
Shanghai is already a hub for leading eVTOL (electric Vertical Take-Off and Landing) companies. Currently, four of China's five eVTOL companies that have successfully conducted maiden flights are based in Shanghai. These companies are expected to obtain airworthiness certification and start commercial operations by 2026.
Shanghai's advantages include a robust materials supply chain, government support for airspace allocation, and a conducive environment for innovation. The city's strong aviation industry foundation, including the C919 and ARJ21 aircraft, combined with its capital and talent concentration, strongly positions Shanghai for leading the low-altitude economy.
According to its three-year action plan, Shanghai aims to become a global leader in low-altitude economic innovation by 2027, targeting a core industry scale of over 50 billion yuan.
Though still in its early stages, Shanghai's low-altitude economy is developing specialized industrial layouts in different districts. For instance, the Hongqiao International Central Business District is building a headquarters cluster for the sector, connecting with Qingpu, Changning, and Minhang districts to attract innovative companies and research centers.
Hongqiao's main tasks are to create this headquarters cluster and use exhibitions to boost industry influence. The first Low-Altitude Economy Expo (Shanghai) is set for late July next year to increase visibility.
Other districts are also aligning with the overall strategy. Jinshan district is enhancing drone logistics with Zhoushan islands, Qingpu district is working with leading logistics companies for broader transportation, and central districts like Yangpu are expanding smart low-altitude logistics.
