Leading enterprises in the low-altitude economy sector are strengthening their foothold in Shenzhen’s Qianhai special economic zone, citing its policy support, cross-border connectivity and industrial chain network as key drivers for their decisions.
Some are pushing forward with plans to launch cross-border drone flight for express deliveries between Shenzhen and Hong Kong.
Phoenix Wings, a cargo drone company of delivery giant SF Express, said it is working to launch cross-border flights between Shenzhen’s Shekou area and Hong Kong’s Tsing Yi, without stating a specific timeline.
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The company said it will launch drone delivery services within Hong Kong this month.
The initial route will operate between islands, running between two points in Cyberport, Cheung Chau Island and Lamma Island,” Chen Xiaohui, director of government affairs at Phoenix Wings, said.
He added that drone logistics transportation between cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have immense business potential, and the company will step up efforts to enhance intercity routes in the 11-city cluster.
Phoenix Wings currently makes over 1,000 daily drone flights in Shenzhen, carrying more than 20,000 parcels. Its cross-city route between Shenzhen and Zhongshan spans 72 kilometers, with each flight taking approximately 40 minutes.
The influx of key players in the low-altitude economy reflects a strategic bet on Qianhai’s advantages as a hub for the fast-growing sector.
“On the policy front, Shenzhen’s responsiveness is a standout,” said Jia Siyuan, general manager of Zerog Aircraft Industry, a manufacturer of electric vertical take-off and landing (eVTOL) aircraft.
“The city provides us with partial upfront funding incentives during the airworthiness certification process for aircraft models, which has alleviated our financial pressure in the critical research and development phase. Moreover, local authorities have demonstrated agility in securing dedicated airspace for our flight tests,” he said.
Cai Yize, founder and CEO of Zex Drone Racing, highlighted the importance of industrial chain integration in facilitating the company’s business growth.
The firm, which relocated to Shenzhen last year, is part of a sound industrial chain system in Qianhai covering technological R&D, whole machine manufacturing, scenario application, flight testing, airworthiness services, and exhibition and display.
“This ecosystem supports our comprehensive development spanning hardware and software development, event operations and training, while leveraging cross-region resources to drive growth in the sector,” Cai said.
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As Chinese cities vie for a slice of the low-altitude economy pie, Shenzhen, which is known as “China’s Silicon Valley”, is striving to take the lead.
The metropolis started implementing regulations to better govern the burgeoning sector in February last year, marking the country’s first legislation for the low-altitude economy.
The value-added of industrial enterprises above a designated size — enterprises with annual revenue of at least 20 million yuan($2.8 million) – in Shenzhen amounted to 21.38 billion yuan as at the end of 2024, a year-on-year increase of 26.4 percent. The number of enterprises in the industrial chain exceeded 1,900.
Contact the writer at sally@chinadailyhk.com
