How Will China's New Drone Law Reshape the $280 Billion Low-Altitude Economy?
Key Points
- 1China's revised Civil Aviation Law, approved December 27, 2025, formally regulates unmanned aircraft for the first time.
- 2The new rules, effective July 1, 2026, mandate airworthiness certification from the CAAC for medium and large drones and all related entities.
- 3The regulation aims to secure airspace and guide the low-altitude economy, which is forecast to exceed 2 trillion yuan ($280 billion) by 2030.
- 4Major manufacturers like DJI and EHang, along with drone logistics firms, will face tighter compliance and operational standards.
Beijing has enacted a significant overhaul of its decades-old Civil Aviation Law. This revision formally brings unmanned aircraft systems (UAS) under the national legal framework for the first time. The new rules are a critical step to tighten aviation safety rules across the country.
This legislation is set to take effect on July 1, 2026. It directly addresses the country's fast-growing drone and low-altitude economy sectors.
Key Regulatory Changes
The most impactful change is the new requirement for airworthiness certification drones. All entities involved in the design, production, import, maintenance, and flight operations of drones must obtain this certification. This mandate comes directly from the Civil Aviation Administration of China (CAAC).
Exemptions apply to micro, light, and small civil unmanned aircraft. However, medium and large models must apply to the CAAC for certification. This new China drone regulation also requires manufacturers to assign a unique product identification code to each unit.
- The revised Civil Aviation Law was approved on December 27, 2025.
- The law expands the 1995 legislation to 16 chapters and 262 articles.
- It explicitly bans laser interference and electromagnetic disruptions to aviation.
Addressing Safety and Oversight Gaps
Oversight has lagged behind the rapid expansion of the unmanned aircraft systems market. In recent years, illegal drone operations have caused flight delays in several cities. The new law aims to close these regulatory gaps and enhance safety.
The move builds upon interim 2024 regulations that required real-name registration for all drones. Elevating these measures into permanent law signals tighter control over this strategic sector.
Impact on the Low-Altitude Economy
The new China drone regulation is tied to a national strategic initiative: the low-altitude economy. This sector focuses on commercial activities below 3,000 meters (9,840 feet).
Industry data shows significant growth in this area. The low-altitude economy is forecast to grow from 1.5 trillion yuan in 2025. Estimates project it will surpass 2 trillion yuan ($280 billion) by 2030. Drone logistics is a major driver, with 2.7 million packages delivered in 2024.
Industry Stakeholders Affected
The tighter requirements will directly impact major manufacturers. This includes DJI, the world's largest consumer drone maker. It also affects EHang, which produces passenger drones. Companies like JD.com and Meituan, which are investing heavily in drone logistics China, face new compliance standards.
Opportunities and Challenges:
- Opportunity: The clear legal framework can accelerate commercialization and investment. It provides a stable environment for advanced operations like air taxis.
- Challenge: Manufacturers must adapt production processes to meet new certification standards. This may increase costs and complexity for development.
- Risk: Strict rules could stifle innovation for smaller companies or hobbyists. The industry must balance safety with commercial growth.
This regulatory update is crucial for the future of commercial aviation news and technology in the region. For more updates on global aviation policy, visit flying.flights. The new law is expected to bring order and trust to the rapidly expanding market.
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