Beijing bans owning and flying recreational drones after small plane hits CITIC Tower
Beijing issued official aviation safety regulations and guidance on Sunday, September 13, banning the public from owning or keeping drones and drone parts starting November 15. Residents have until November 14 to move drones out of Beijing, and the government will run a buyback program with a maximum subsidy of 3,000 yuan, about 447 dollars, per device. The measure is one of the strictest drone controls in the world, coming after a two-seat light aircraft struck the 109-story CITIC Tower in June, killing the pilot and injuring 13 people. The crash site was only a few kilometers from the headquarters of the Chinese Communist Party and the residences of senior leaders. The new rules designate all of Beijing's airspace as controlled airspace, ban all forms of recreational flying, and officials will tighten control of airspace in and around the capital within a 300-kilometer radius. Although commercial flights are not affected, aircraft must have backup tracking systems and maintain two-way communication with air traffic controllers at all times. Reports say the pilot in the CITIC Tower incident deliberately flew the plane into the building after deviating from the designated flight path, and it is highly likely he ignored contact from air traffic controllers. The aircraft also nearly collided with a commercial plane. Meanwhile, shares of companies tied to China's low-altitude aviation industry fell in trading today, September 14. Nanjing LES Information Technology dropped 2.1%, Zhejiang Wanfeng Auto Wheel fell 1.5%, and Citic Offshore Helicopter declined 1.7%.
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China Declares Low-Altitude Economy a National Strategy, Opening a New Investment Arena
China has declared the low-altitude economy a national strategy under the concept of New Productive Forces. By 2026, cargo drones, agricultural drones, and flying taxis (eVTOL) will begin commercial services in several provinces, creating enormous economic value from the supply chain in airspace below 1,000 meters. Two standout case studies are EHang Holdings, the first Chinese company to receive a Type Certificate from the Civil Aviation Administration of China (CAAC) for commercial eVTOL, and Sichuan Jiuzhou, a state-owned enterprise that produces radar and ADS-B systems and controls air traffic infrastructure. Both companies have strong business moats in terms of regulation and national security. While the world is focused on the EV price war, a new battleground over China's skies has opened, and the winners will be those who secure licenses and infrastructure first.
Cabinet acknowledges package to accelerate U-Tapao and Eastern Aviation City, expects to draw 1.3 trillion baht in private investment
The Cabinet has acknowledged necessary and urgent support measures to begin the U-Tapao Airport and Eastern Aviation City development project, in line with a resolution of the Eastern Economic Corridor Policy Committee, with the goal of having the measures take effect by 30 September 2026. Key measures include allowing operators to deduct investment and operating expenses at twice the rate, issuing a special EECa Visa for foreigners, reducing corporate income tax for international air transport operators, and lowering registration fees for property leases and transfers. The Office of the Eastern Economic Corridor Policy Committee estimates that these measures will help stimulate about 1.3 trillion baht in private investment over the project's lifetime, create more than 63,701 jobs, add about 400,000 foreign tourists per year, and generate more than 37 billion baht in gross domestic product in the first year of operation.
