On 27 December 2025, the 19th Session of the Standing Committee of the 14th China's National People's Congress deliberated and adopted the amended Civil Aviation Law of the People's Republic of China (the "Civil Aviation Law"). The New Civil Aviation Law ("New Civil Aviation Law") comprises 16 chapters and 262 articles, and will come into force on 1 July 2026.
Since its promulgation on 30 October 1995, the Civil Aviation Law has undergone seven revisions, with 2025 marking a more systematic and comprehensive overhaul. The main background for this comprehensive revision is that "the aviation industry is developing rapidly, and the Civil Aviation Law can no longer fully adapt to the new situation and new problems."[1]
One of the highlights of the New Civil Aviation Law is the formal inclusion of promoting and developing the low-altitude economy into the basic law of the civil aviation sector, providing legal protection for the development of the low-altitude economy. This article focuses on and briefly analyzes the content of the New Civil Aviation Law related to the low-altitude economy.
Ⅰ. Low-altitude economy development requires foundational legal safeguards
In recent years, the low-altitude economy has attracted much attention in China. In 2021, "low-altitude economy" was incorporated into the National Comprehensive Three-dimensional Transport Network Planning Outline issued by the Central Committee of the Communist Party of China and the State Council. The 2023 Central Economic Work Conference included "low-altitude economy" among strategic emerging industries. The 2025 State Council Government Work Report proposed "promoting the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology." "As a representative of new productive forces, the low-altitude economy reflects new trends in civil aviation development and injects new vitality into China’s economic growth. Its advancement requires both technological support and legal safeguards."[2]
Currently, "China's low-altitude economy remains in its nascent stage, facing constraints in infrastructure development, airworthiness management, and airspace management."[3] At the institutional level, China’s low-altitude economy is primarily reflected in national economic policies and local-level legislation, lacking a top-level design at the national legislative level.
Therefore, the revision of the Civil Aviation Law this time is a response to the new legislative demands of the development of the low-altitude economy, aiming to provide foundational legal protection for the development of China's low-altitude economy.
Ⅱ. Key contents concerning the low-altitude economy in the New Civil Aviation Law
1. Airspace Division
Article 74 of the New Civil Aviation Law stipulates that "the division of airspace shall take into account the needs of civil aviation and national defence security, the development of the low-altitude economy, and the public interest, ensuring the rational, safe, adequate, and effective utilisation of airspace."
This marks the first time legislation has mandated that airspace division must take into account the needs of the development of low-altitude economy activities, which is listed alongside civil aviation, national defense security, and public interests as one of the statutory factors to be considered in airspace division. Previously, the fundamental principles for airspace division established under the Civil Aviation Law included: unified state management of airspace; airspace division must balance civil aviation, national defence security, and public interests; and ensuring the rational, full, and effective utilisation of airspace.[4]
The National Airspace Basic Classification Method issued by the Civil Aviation Administration of China (CAAC) in December 2023 categorises airspace into seven classes: A, B, C, D, E, G, and W. Classes A, B, C, D, and E constitute controlled airspace, while classes G and W are uncontrolled airspace. The introduction of classes G and W uncontrolled airspace marks China's first step towards open airspace management.
The New Civil Aviation Law explicitly incorporates accommodating the "development needs of the low-altitude economy" as one of the fundamental principles for airspace division, thereby establishing a legal foundation for China’s low-altitude economy development.
2. Specialised Development and Promotion of the Low-Altitude Economy
Article 225 of the New Civil Aviation Law is a special legal provision tailored for the development of the low-altitude economy in China. It stipulates that “the State shall adopt measures to optimise the allocation of low-altitude airspace resources, promote the establishment of regulatory service platforms for civil low-altitude flight and applications, and establish and improve airworthiness certification, flight management systems, and standards that meet the requirements of low-altitude economy development.”
The provision further stipulates: “Relevant departments of the State Council and provincial-level people's governments shall formulate development plans for the low-altitude economy as needed, refine supportive policy measures, encourage technological innovation and application expansion in the low-altitude economy sector, and promote the development of the low-altitude economy.”
Article 225 of the New Civil Aviation Law represents a targeted response to the main problems and pain points currently faced by the development of the low-altitude economy in China.
In the development of the low-altitude economy, airspace is a key resource. However, outdated airspace management models constrain the growth of China’s low-altitude economy. China faces insufficient supply of airspace suitable for flight operations, with limited practical airspace available across regions and fragmented in distribution, making it difficult to support future requirements for high-capacity, high-density, and multi-scenario operations. Taking Guangdong as an example, currently only 40% of the province's airspace is suitable for low-altitude flight operations, with an overlap rate of merely 25% in areas where low-altitude user demand is concentrated. [5]
In December 2023, the CAAC released the Draft Regulations of the People’s Republic of China on Airspace Management for public consultation, proposing to "establish a top-level design for airspace management, enabling scientific and precise allocation of airspace resources, tiered and categorised management, and dynamic, flexible utilisation, thereby enhancing the overall effectiveness of air traffic management governance". It further aims to "strengthen and standardize airspace management at the national legislative level, so that various levels and types of air traffic management laws and regulations can cooperate and complement each other, thereby promoting the establishment of a scientifically structured and effectively operational legal framework for air traffic management." Currently, these regulations on airspace management have yet to be formally enacted.
"The State shall adopt measures to optimise the allocation of low-altitude airspace resources." It is anticipated that the formal promulgation of the aforementioned airspace management regulations and other measures will address the current situation of inadequate and inefficient allocation of low-altitude airspace resources, which hampers the development of the low-altitude economy.
Moreover, “China currently continues to use traditional airspace management models. The approval processes for low-risk airspace management in urban settings remain complex, time-consuming, and inefficient, failing to meet the low-altitude economy’s demands for timely and flexible airspace utilisation and flight operations. This poses significant obstacles to the large-scale commercial application of the low-altitude economy.”[6] Article 225 of the New Civil Aviation Law emphasizes “promoting the development of regulatory service platforms for civil low-altitude flight and related applications," thereby providing platform support for the safe operation of cutting-edge sectors such as eVTOL and large-scale drone logistics.
Currently, "China's airworthiness standards and certification system remain immature. Most eVTOL certifications are obtained through case-by-case assessments or specialised approvals, lacking standardised certification procedures. This results in prolonged certification cycles and high costs for eVTOLs, which are already impacting the market promotion and application of related products."[7] Article 225 stipulates the "establishment and improvement of airworthiness certification, flight management systems, and standards adapted to the requirements of low-altitude economy development," aiming to promote the creation of relevant airworthiness certification systems and standards aligned with China's low-altitude economy development needs.
Furthermore, Article 221 of the New Civil Aviation Law explicitly states that “the State shall improve the organisational structure and standards for civil aircraft airworthiness certification, strengthen the training of airworthiness certification personnel, establish and improve a risk-based, categorised and graded airworthiness management approach, and enhance airworthiness certification capabilities and standards." This represents a targeted requirement for improving the overall airworthiness certification capacity of civil aircraft in China.
During the third review of the draft amendments to the Civil Aviation Law in December 2025, provisions were further added stating that "relevant departments of the State Council and provincial-level people's governments shall formulate development plans for the low-altitude economy as required, refine supportive policy measures, encourage technological innovation and application expansion in the low-altitude economy sector, and promote the development of the low-altitude economy." This aims to achieve coordinated planning and collaborative efforts for the development of the low-altitude economy through a combination of central and local government initiatives.
3. Infrastructure Construction
The New Civil Aviation Law establishes special sections for transport airports and general aviation airports, adopting a categorised management approach for central and local responsibilities in planning, construction and other aspects. Regarding general aviation airports, the New Civil Aviation Law introduces several provisions concerning their classification and tiered management, construction, planning, and operational licensing, reflecting support for the development of general aviation and the low-altitude economy.
Article 69 of the New Civil Aviation Law stipulates that general aviation airports shall be managed through a classification and tiered system based on operational type, construction scale, and standards, thereby providing a higher-level legal basis for the Regulations on the Management of General Aviation Airports (Order No. 11 of the Ministry of Transport of the People’s Republic of China, 2024). Articles 70 and 71 stipulate the authority of the people’s governments of provinces, autonomous regions, and municipalities directly under the central government over the construction and planning of general aviation airports within their administrative regions.
Regarding the current state of general aviation airport construction and operation in China, the number of such airports continues to grow. Relevant data shows that by the end of November 2024, China had 744 registered general aviation enterprises, 3,226 registered general aviation aircraft, and 470 general aviation airports.[8]
4. Regulations Concerning Unmanned Aircraft Systems
Article 34 of the New Civil Aviation Law stipulates that "Engaging in the design, production, import, maintenance, or flight operations of civil unmanned aircraft shall require applying to the civil aviation authority under the State Council for airworthiness certification in accordance with relevant national regulations, except where such certification is not required under applicable provisions." It further requires that "entities engaged in the production of civil unmanned aircraft shall assign unique product identification codes to the unmanned aircraft they manufacture in accordance with relevant national regulations."
Pursuant to the Interim Regulations on the Management of Unmanned Aircraft Operations, the design and production of medium and large drones are regulated under the traditional civil aviation "airworthiness certification" model (type certificate, production certificate, airworthiness certificate). Small drones below are exempt from airworthiness certification requirements for design, production, and import. China has established a regulatory framework requiring unique identification codes for civil drones. Manufacturers must assign unique product identification codes to their drones and submit this information to the Ministry of Industry and Information Technology for record-keeping prior to market release.
Article 61 of the New Civil Aviation Law stipulates measures to address potential disruptions to civil airport operations caused by unmanned aircraft. It requires that the state shall legally designate controlled airspace for unmanned aircraft within civil airports and surrounding designated zones. Civil airports are required to possess corresponding capabilities for preventing and addressing unmanned aircraft incidents, and to equip themselves with necessary detection and countermeasure devices in accordance with the law.
China holds a prominent position in the global unmanned aerial vehicle sector. With rapid technological advancement, drones demonstrate significant application prospects and commercial potential across multiple fields including logistics delivery, agricultural protection, geographical surveying, and emergency rescue. "With the rise of the consumer boom of unmanned aerial vehicles, unauthorised flights of ‘low, slow and small' unmanned aerial vehicles pose safety hazards to civil airport operations."[9] The New Civil Aviation Law contains provisions conducive to the standardisation and safe operation of unmanned aircraft.
Ⅲ. Current Regulatory Framework, Policies and Practices in China’s Low-Altitude Economy Sector
At present, the field of the low-altitude economy in China mainly applies the traditional civil aviation-related legal system. Concurrently, regulatory authorities have also successively introduced regulatory provisions for new technologies and new forms of business that have emerged in the development of the low-altitude economy.
In addition to the Civil Aviation Act, there are also many administrative regulations and departmental rules and regulations. These include administrative regulations such as the Civil Aircraft Airworthiness Management Regulations and the Basic Rules of Flight, alongside departmental rules such as the Civil Aviation Rules (CCAR) issued by the Ministry of Transport or the Civil Aviation Administration of China. The Regulations on the Certification of Civil Aviation Products and Components (2024 Amendment), for instance, constitute the CAAC's administrative rules governing the design and production approval of aircraft, engines, propellers, and various components. The National Airspace Basic Classification Method represents a departmental regulation introduced in response to low-altitude airspace management reforms.
In recent years, legislative activities at the local level have also become more active. For instance, local industrial promotion regulations such as the Shenzhen Special Economic Zone Low-Altitude Economy Industry Promotion Regulations, the Guangzhou Low-Altitude Economy Development Regulations, the Suzhou Low-Altitude Economy Promotion Regulations, and the Wuxi Low-Altitude Economy Development Promotion Regulations have been successively enacted.
In addition to relevant laws, regulations, and rules, various State Council departments and multiple local governments have issued policies and plans for low-altitude economy development. For instance, in April 2025, the Central Air Traffic Management Committee issued special measures focusing on improving the low-altitude management system, optimising airspace resource allocation, enhancing operational service quality and efficiency, strengthening foundational support capabilities, and reinforcing lawful airspace management and utilisation. These measures were deployed to the national air traffic management system to strengthen low-altitude air traffic control work. On 22 December 2025, the National Development and Reform Commission issued the Statistical Classification of Low-Altitude Economy and Its Core Industries (Trial), aiming to clarify the statistical scope and boundaries of the low-altitude economy. It categorises the low-altitude economy into four major sectors: low-altitude manufacturing, operations, infrastructure and information services, and supporting sectors. It further defines core industries of the low-altitude economy as all economic activities providing products, infrastructure, and service support for low-altitude flight operations, as well as those delivering services to the public based on low-altitude flight.
At the local level, on 26 December 2025, Shanghai formulated the Several Measures of Shanghai Municipality on Linking the Yangtze River Delta to Accelerate the Development of an Advanced Low-Altitude Economy Manufacturing Cluster, aiming to "safely and orderly advance the high-quality development of the low-altitude economy industry, fully leverage Shanghai's comparative advantages in manufacturing, link the Yangtze River Delta to aggregate resources and elements across the entire low-altitude economy industrial chain, and build a nationally leading, world-class advanced low-altitude economy manufacturing cluster." The document sets specific targets that by 2028, Shanghai's core low-altitude economy industries shall reach approximately RMB 80 billion in scale, establishing a complete industrial chain system for new low-altitude aircraft. It aims to build a national advanced manufacturing cluster for the low-altitude economy, accelerating progress towards becoming the "World eVTOL Capital" with prominent comparative advantages.
Ⅳ. Impact of the New Civil Aviation Law on China's Low-Altitude Economy
The New Civil Aviation Law provides top-level design and legal safeguards for China's low-altitude economy development at the national legislative level. The new law not only incorporates "low-altitude economy development needs" as a statutory consideration in China's airspace division but also introduces a special chapter on "development promotion", formally establishing the legal framework for the low-altitude economy. This will lay the institutional foundation for the long-term, stable development of China's entire low-altitude economy sector.
The amended Civil Aviation Law also establishes the specific institutional framework direction for China's low-altitude economy development. The new legislation explicitly requires optimising the allocation of low-altitude airspace resources and promoting the construction of a regulatory platform for low-altitude flight and application services. This aims to enhance the allocation of airspace resources that meets the needs of low-altitude economy development and to improve the current situation where physical and digital infrastructure in the low-altitude economy sector lags behind. The new law further requires the establishment and improvement of airworthiness certification systems and standards adapted to the demands of low-altitude economy development. It calls for the creation and enhancement of a risk-based, categorised and graded airworthiness management approach, alongside the elevation of airworthiness certification capabilities and standards. This seeks to address the significant bottlenecks and chokepoints in the current development of the low-altitude economy.
The New Civil Aviation Law will provide stable market expectations, injecting institutional safeguards and momentum into the scaled and industrial development of China’s low-altitude economy, thereby promoting its healthy and orderly growth.
Footnotes:
[1] Draft Amendment to the Civil Aviation Law Submitted to the Standing Committee of the National People's Congress for Review: Focusing on Enhancing the Safety Assurance Level of Civil Aviation, Website of the National People’s Congress of China, http://www.npc.gov.cn/npc/c2/c30834/202502/t20250225_443065.html
[2] Yu Wenhao, Shu Yong, et al., "Special Symposium on the Revision of the Civil Aviation Law," Journal of Beijing University of Aeronautics and Astronautics (Social Sciences Edition), Issue 4, 2025.
[3] Draft Amendment to the Civil Aviation Law Submitted to the Standing Committee of the National People's Congress for Review: Focusing on Enhancing the Safety Assurance Level of Civil Aviation, Website of the National People's Congress of China, http://www.npc.gov.cn/npc/c2/c30834/202502/t20250225_443065.html
[4] Dong Nianqing, "System Construction and Institutional Reconstruction of Legal Protection for the Low-altitude Economy – Centered on the Reform of Low-altitude Airspace Management," Modern Economic Discussion, Issue 12, 2025.
[5] Li Liancheng, Li Mingliang, Ma Pingping, "Accelerating the High-Quality Development of the Low-altitude Economy," Macroeconomic Management, Issue 10, 2025.
[6] Li Liancheng, Li Mingliang, Ma Pingping, "Accelerating the High-Quality Development of the Low-altitude Economy," Macroeconomic Management, Issue 10, 2025.
[7] Current Status and Policy Suggestions for the Development of eVTOL Industry in China under the Perspective of Low-altitude Economy, https://eco.cctv.com/2025/06/04/ARTIrAuqYwE1qJUXeRFUXELZ250604.shtml
[8] Looking at China at the Beginning of the Year | China on the Wings: New Track, "Takeoff," https://www.news.cn/sikepro/20250110/042db462919040ab9bd0cf1fa59e390c/c.html
[9] Yu Wenhao, Shu Yong, et al., "Special Symposium on the Revision of the Civil Aviation Law," Journal of Beijing University of Aeronautics and Astronautics (Social Sciences Edition), Issue 4, 2025.
Source: King & Wood Mallesons
Authors:
- Atticus Zhao, Partner, Corporate & Commercial Group, atticus.zhao@cn.kwm.com; Areas of Practice:M&A, foreign direct investment, corporate restructuring, data and privacy protection
- Dannie Sima, Associate, Corporate & Commercial Group
- Hongyu Xu, Associate, Corporate & Commercial Group
- We extend our gratitude to intern Zhang Jingyi for her contribution to this article.

