Low-Altitude Economy | An Exploration of the Rule-of-Law Support and Commercial Empowerment Pathways for High-Quality Development of the Low-Altitude Economy—From the Perspective of Legal Services by Lawyers

Introduction

With drones and electric vertical takeoff and landing aircraft ( eVTOL With breakthroughs in technologies such as these, the low-altitude economy is reshaping the global economic landscape with a “three-dimensional spatial development” approach. From logistics and delivery to agricultural pest control and urban air transportation, its application scenarios now span multiple sectors—including people’s livelihoods, industry, and governance. According to data from CCID Consulting, 2023 This year, China's low-altitude economy has surpassed a certain scale. 5000 100 million yuan, estimated 2035 Will reach the year 3.5 Trillions of yuan—this figure has become a crucial vehicle for new-quality productivity. However, the growing tension between technological breakthroughs and lagging legal frameworks is becoming increasingly evident: ambiguities in airspace usage regulations, frequent data security risks, and the absence of clear standards for determining liability—all these issues are hindering the industry’s transition from “experimental stages” to “commercialization.” As a bridge between law and business, lawyers must play a pivotal role in ensuring compliance, shaping regulatory frameworks, and creating value. Drawing on practical legal service experience and integrating legal theory with commercial logic, this article systematically explores pathways for legal safeguards and commercial empowerment in the low-altitude economy.

I. Theoretical Connotations and Industrial Characteristics of the Low-Altitude Economy

1.1  Conceptual Evolution and Core Definition

The concept of the “low-altitude economy” first emerged in... 2009 In that year, the focus was primarily on general aviation and related industries. Subsequently, the “low-altitude economy” has been repeatedly brought to public attention, and after... 2011 Year— 2020 The initial development period of the year, at 2021 After the year, it entered a period of rapid development. Currently, the “low-altitude economy” is defined as an economic sector that utilizes low-altitude airspace (typically referring to true altitude). 1000 Below meters, can extend to 3000 based on meters, and utilizing unmanned aerial vehicles, eVTOL An integrated economic model that uses platforms as carriers and spans multiple links including manufacturing, operations, and data services. Among these, 1000 Areas below 1,000 meters are the core activity zones of the low-altitude economy, where airspace management and approval processes are relatively flexible. 1000 Mile to 3000 To expand its operational area, the region has relatively strict airspace management requirements. Therefore, flight plans must be submitted to the relevant authorities and subject to air traffic control.

The low-altitude economy and traditional general aviation have a mutually coordinated relationship of development. General aviation is an important component of the low-altitude economy, while the low-altitude economy, in turn, provides new opportunities for the development of general aviation. The key differences between the two lie in the following aspects: Technologically, the shift is from “fuel-powered, manned operations” to “electrification, intelligence, and unmanned operations”; in terms of application, the focus has moved from “high-end and niche markets” to “mass-market and inclusive access”; and in infrastructure development, the emphasis has shifted from “relying on runways” to “vertical takeoff and landing” (see table). 1 In exploring the essence of the matter, the author is more inclined to analyze the distinction between the two from the perspective of security assurance: Is it the traditional approach of “isolated security,” or the future approach of “integrated security”? This is a question worthy of market consideration. Perhaps in the future, as traditional general aviation and the low-altitude economy become highly integrated, we will be able to achieve unification at this level.

Table 1  Comparison of Core Characteristics Between General Aviation and the Low-Altitude Economy

1.2  Industrial Ecology and Development Drivers

The low-altitude economic industrial chain can be divided into a core layer (manufacturing, flight operations, and support services) and a supporting layer (comprehensive services and derivative industries). The core layer focuses on drones, eVTOL R&D and manufacturing serve as the hardware foundation, while logistics, cultural tourism, and other sectors enable value realization through flight operations. The support layer encompasses specialized services such as airspace applications, data services, and insurance & finance, and is also a key area of deep involvement for lawyers.

The rapid rise of the low-altitude economy is driven by multiple factors, including the impetus from national strategies. 2024 (included for the first time in the annual government work report), and is also rooted in iterative technological breakthroughs (such as increased battery energy density, AI Optimization of flight control algorithms—combined with the surge in market demand (such as instant logistics and emergency rescue scenarios) and a massive influx of capital—is at the heart of the heightened public attention.

II. Current Status of Legal Regulation and Core Issues

2.1  Policy System Framework

In practice, China’s low-altitude policy system has evolved into a multi-dimensional structure characterized by “national-level entities taking charge of top-level design and strategic planning, provincial governments serving as a bridge between the national and local levels and focusing on management, and city- and county-level authorities emphasizing market application and implementation of policies.” Policies have gradually shifted from “identifying problems” to “solving them.”

2.2  Construction of the Legal System and Its Weaknesses

According to statistics, China has preliminarily established an “international treaty” framework. - Law - Administrative regulations - Departmental Regulations - The multi-level regulatory system of “local regulations” covers a wide range of fields, including drones, general aviation, digital compliance, and the low-altitude economy. The core rules of this legal framework include the “Civil Aviation Law” (currently under revision), the “Regulations on Air Traffic Control for General Aviation,” and the “Interim Regulations on the Management of Unmanned Aircraft Flight.” Among these, the “Interim Regulations on the Management of Unmanned Aircraft Flight” explicitly introduces, for the first time, a categorized management approach for drones—dividing them into micro, light, small, medium, and large categories.

Currently, the legal framework for the low-altitude economy still has three major shortcomings: First, there is a lag in higher-level legislation and fragmentation of regulatory norms. The existing “Civil Aviation Law” does not systematically cover the low-altitude economy, and departmental regulations and local statutes often conflict with each other, leading to high compliance costs for enterprises operating across regions. Second, there is an imbalance between safety regulation and incentives for innovation. Current rules focus heavily on flight safety—such as setting no-fly zones and requiring real-name registration—but pay insufficient attention to technological innovation (e.g., AI Insufficient provisions regarding responsibilities for flight control algorithms and market development (such as the market-based allocation of airspace resources) result in a situation where “we can regulate effectively but lack the flexibility to unleash potential.” Third, data security and liability determination remain vague: The ownership and cross-border transmission rules for geographic information and personal trajectories generated by low-altitude flights have not been detailed within the framework of the Data Security Law and the Personal Information Protection Law. Furthermore, issues concerning accident liability—such as... AI Decision-making errors and multi-agent collaboration lack professional accountability standards.

III. Building a Rule-of-Law Safeguard System—Centered on Professional Legal Services Provided by Lawyers

3.1  End-to-end compliance review service

When providing compliance review services to companies in the low-altitude economy sector, lawyers can take a four-dimensional approach covering “airspace—safety—products—data.”

Airspace Access Compliance: Assist in applying for surveillance airspace and reporting airspace, handle temporary airspace procedures, and ensure that flight plans are legally filed.

Flight Safety Compliance: Guidance on Establishing Compliance with CCAR-92 Operation manuals and safety management systems required by the department ( SMS ), embed safety culture;

Product Airworthiness Compliance: Review of Drones, eVTOL the design and production stages, ensuring compliance with the Civil Aviation Administration’s type certification requirements ( TC )、Production License ( PC ) Requirements;

Data Compliance: Assist in establishing a comprehensive system covering the entire lifecycle of data collection, storage, and cross-border transmission, and review compliance with legal requirements such as the Data Security Law and the Personal Information Protection Law, thereby safeguarding personal privacy and trade secrets.

3.2  Daily Legal Protection and Innovation Support

Legislative Consultation and Policy Interpretation: Providing enterprises with in-depth interpretations of the latest national and local low-altitude economy policies, helping them accurately grasp policy directions and seize early development opportunities. At the same time, offering professional advice to legislative bodies on drafting and revising relevant laws and regulations.

Contract Review and Drafting: Draft contracts related to the low-altitude economy sector, such as technology development and operational services, clearly defining rights and responsibilities.

Intellectual Property: Assist enterprises in patent and trademark planning and layout, and help them mitigate the risk of infringement.

Innovative Dispute Resolution: Leveraging blockchain technology to securely preserve electronic evidence such as flight data and air traffic control instructions; exploring the integration of smart contracts into insurance policies to enable rapid claims processing in the event of accidents; and promoting the establishment of innovative dispute-resolution mechanisms to address new types of disputes that may arise from the emerging low-altitude economy.

Investment and Financing: Corporate equity structure design, M&A restructuring, and specialized legal services for investment and financing.

Cross-border Legal Services: Providing services for low-altitude economic activities involving international cooperation or cross-border operations, including review and drafting of international contracts, international arbitration, cross-border investment and trade, and other related legal matters.

Legal Services for Emerging Businesses: Focused on Urban Air Mobility ( UAM ) and provide services related to legal compliance and business model design for application scenarios such as drone-based logistics delivery.

IV. The Path to Commercial Empowerment: From Compliance to Value Creation

4.1  Capitalization of Data Elements

2024 This year, a group of low-altitude economic data assets in Haining City have been assessed at a value exceeding... 2 The data asset, valued at hundreds of millions of yuan, can be leveraged for the development of smart cities, low-altitude logistics, and low-altitude cultural and tourism initiatives. Moreover, financing based on this data asset will also be directed toward building supporting infrastructure and developing application scenarios for the local low-altitude economy, thereby successfully establishing the “Haining Model” for the low-altitude economy—a replicable framework. In the field of the low-altitude economy, the primary types of data include flight operation data, airspace management data, platform and equipment operation data, environmental and geographic data, and commercial data. How to transform massive amounts of data into assetized forms and capitalize them is a crucial issue that the low-altitude economy must address.

Enterprises are building a closed-loop system encompassing data collection and storage, analytical pricing, and transaction applications. In this stage, lawyers can play a key role by ensuring compliance and establishing ownership rights for data sources, overseeing data governance and quality control, developing robust data security frameworks, reviewing project contracts and mitigating risks, and providing data compliance consulting as well as interpreting financing policies—thereby facilitating the transformation of data from a mere “information resource” into a “financial asset.”

4.2  Innovative financing models

According to industry forecasts, the size of China's low-altitude economy market is expected to grow from 2023 of the year 5000 Increased to hundreds of millions of yuan 2035 of the year 3.5 Trillions of yuan—its enormous economic potential and social value have triggered a frenzied influx of capital. Currently, financing for the low-altitude economy is showing a trend toward diversification. Based on practical experiences from various regions, it can be broadly categorized into government-led models and... PPP The models—including the franchise model, the self-operated enterprise model, and the industry fund-guided model—are described as follows:

Government-led model. Centered on public services, this model is driven by the government through financial appropriations and special-purpose bonds, which guide planning, construction, and operation to ensure that infrastructure remains both socially beneficial and universally accessible. Its advantages include the ability to prioritize public service needs, strong capacity for resource integration, and good policy continuity. However, its limitations lie in significant fiscal pressures, insufficient operational efficiency and innovation incentives, and its primary applicability to emergency rescue and public-service-oriented infrastructure projects.

PPP The Public-Private Partnership (PPP) model involves collaboration between the government and private capital, where both parties jointly invest, construct, and operate projects, sharing risks and benefits. This model leverages the government’s resources alongside the expertise of enterprises. Its advantages include alleviating fiscal pressure on the government, introducing market-oriented operational mechanisms, and enhancing efficiency and quality. However, its drawbacks include a lengthy preparation period for projects, significant challenges in coordinating interests, and the need to further refine the regulatory framework.

Enterprise-owned operation model. Enterprises independently or jointly invest in, build, and operate projects, guided by market demand, with a strong focus on profitability and innovation, and characterized by rapid responsiveness. Its advantages include quick market response, robust innovation drive, and high operational efficiency. Its disadvantages include high investment risks, insufficient public welfare orientation, and weak resource integration capabilities. This model is particularly suitable for sectors with strong market demand, such as logistics and tourism.

Industry fund guidance model. Government or enterprises initiate industry funds and leverage equity investments to attract private capital participation, making it suitable for projects in the industrial nurturing phase. Its advantages include leveraging private capital, possessing strong professional investment capabilities, and achieving risk diversification. However, it also suffers from complex decision-making processes, significant challenges in aligning interests, and high demands on exit mechanisms.

Table 2  Comparison of Diversified Financing Models

Choosing among the myriad of financing models mentioned above is a major challenge that businesses face in securing funding. As lawyers, we should advise companies to first clearly define their own needs and understandings, and after thoroughly assessing the advantages and disadvantages of various financing models, to make precise matches that align with their specific development requirements. Throughout the implementation of these plans, we will provide comprehensive, professional legal services to ensure the successful execution of the financing arrangements and help companies achieve their funding goals.

V. Conclusion and Outlook

The road may be long and fraught with obstacles, but as long as we keep moving forward, we’ll eventually reach our destination. If we persist without pause, the future will surely hold promise. The low-altitude economy is currently riding a wave of unprecedented opportunity, and while its prospects are vast, the journey ahead won’t be entirely smooth. To achieve high-quality development in the low-altitude economy, we must anchor it firmly on the rule of law and drive it forward with innovation. As architects of rules and co-creators of value, lawyers need to shift from merely “responding to risks” to “proactively guiding and safeguarding” the entire chain—from legislation and compliance to dispute resolution. In the future, as the revision of the Civil Aviation Law is finalized and regulations for data assetization take effect, the low-altitude economy will transition from being “policy-driven” to “institutionally driven,” unlocking market potential worth trillions of yuan—and all this will be underpinned by the rule of law. + The “commercial empowerment” dual-drive approach will also become a key pathway for lawyers to help the low-altitude economy transition from “experimentation” to “maturity.”