In a China first, low-altitude sector hits turbulence as subsidies face reality check
Por Emma Ma,Mia Nurmamat — South China Morning Post – News feed
Advertisement Low-altitude economy Economy China Economy In a China first, low-altitude sector hits turbulence as subsidies face reality check
Hangzhou tech hub looks to end financial incentives for development of light aerial vehicles, including eVTOLs, signalling more optimised regulations after June crash
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Emma Ma in Shanghai and Mia Nurmamat in Hong Kong Published: 8:30pm, 21 Sep 2026
A major Chinese tech hub is moving to pull the plug on dedicated funding for its low-altitude economy, making it the first city in the country to propose repealing a full financial support package for the sector.
The proposal in Hangzhou, the capital of Zhejiang province, comes after the deadly crash of a small aircraft into Beijing’s tallest skyscraper in June. Still, some analysts contend that the reversal does not signal broader policy tightening for the low-altitude economy , but rather a shift towards more optimised and targeted industry regulations.
Hangzhou’s initial policy took effect two years ago and was originally set to remain in force through the end of next year. It spans key segments of the sector – from enterprise establishment and technological innovation to new low-altitude flight routes and infrastructure buildout – offering differing amounts of fiscal rewards.
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