Anqing in Anhui Province, China — key insights for foreign investors and businesses.
Event Overview: Hefei Unveils Ambitious Plan to Become China’s “Capital of Low-Altitude Economy” by 2028
On July 15, 2026, the Hefei Municipal Government officially released the “Hefei Low-Altitude Economy Development Three-Year Action Plan (2026-2028)”, positioning the city as a national pioneer in the emerging sector. The plan sets a target for the city’s low-altitude economy industrial scale to surpass RMB 100 billion by 2028, supported by the construction of over 200 vertiports and the deployment of more than 5,000 electric vertical takeoff and landing (eVTOL) aircraft. This initiative follows Hefei’s successful hosting of the Global Low-Altitude Economy Summit in May 2026, where 28 key projects with a combined investment of RMB 45 billion were signed. The move is a direct response to the central government’s “Action Plan for the Innovation and Development of the Low-Altitude Economy (2024-2026)”, making Hefei one of the first tier-2 cities to translate national policy into a concrete, large-scale urban blueprint.
Deep Analysis: From Manufacturing Hub to Air Mobility Pioneer
Hefei’s aggressive push into the low-altitude economy represents a strategic pivot from its traditional strengths in home appliance and automotive manufacturing. The city is leveraging its existing industrial ecosystem—home to NIO, BYD, and over 300 automotive parts suppliers—to build a supply chain for eVTOL production. The plan specifically targets three core value chain segments: aircraft airframe manufacturing, battery and energy storage systems, and air traffic management software.
Data from the Hefei Municipal Bureau of Statistics shows that the city’s low-altitude economy already contributed RMB 18.5 billion in output value in 2025, a 67% year-on-year increase. The new plan aims to accelerate this growth by offering a 30% subsidy on capital expenditure for companies establishing eVTOL assembly lines in the Hefei Economic and Technological Development Zone. Key projects include the construction of a RMB 6 billion “Aerospace Valley” in Baohe District, which will house R&D centers for EHang, AutoFlight, and XPENG AEROHT—three of China’s leading eVTOL developers.
However, industry analysts point to significant challenges. A report from Deloitte China published in June 2026 noted that battery energy density remains a bottleneck, with current eVTOL models achieving an average flight time of only 20-30 minutes under full payload. Furthermore, the regulatory framework for urban air mobility (UAM) is still evolving. The Civil Aviation Administration of China (CAAC) has only issued two type certification approvals for eVTOL aircraft nationwide as of July 2026, both to companies with operations in Hefei. This places the city at the forefront of certification trials but also exposes it to regulatory delays.
From a competitive perspective, Hefei is not alone in this race. Shenzhen, Guangzhou, and Chengdu have all announced similar plans. Hefei’s unique advantage lies in its “Integrated Circuit + New Energy Vehicle” dual-industry cluster, which provides the necessary expertise in power electronics and lightweight materials. The city is also piloting a “Low-Altitude Economy Special Fund” of RMB 10 billion, co-financed by the Anhui Provincial Government and private capital, to de-risk early-stage investments.
Implications & Action Items
- Investment Opportunity in Battery and Charging Infrastructure: With a target of 5,000 eVTOLs by 2028, the demand for high-density, fast-charging batteries is immense. Foreign investors should explore joint ventures with local battery manufacturers (e.g., Gotion High-Tech, a Hefei-based supplier) to develop solid-state battery solutions tailored for aviation. The city offers a 50% tax rebate on R&D expenses for foreign-invested enterprises in this sector.
- Real Estate and Logistics Site Selection: The plan mandates the construction of 200 vertiports, creating a new asset class in urban real estate. Foreign logistics companies (e.g., DHL, FedEx) should evaluate partnerships with Hefei’s Hangzhou Port Economic Development Zone to secure rights for “air logistics nodes” within the planned network. The first batch of 20 vertiport licenses will be auctioned in Q4 2026, with a minimum bid of RMB 50 million per license.
- Regulatory Engagement and Pilot Programs: The CAAC and Hefei Municipal Government have established a “Joint Low-Altitude Regulatory Sandbox” to fast-track operational approvals. Foreign companies developing air traffic management (ATM) software or U-space platforms should apply for sandbox participation before the December 31, 2026 deadline. Early participants will benefit from a two-year exemption from certain airspace usage fees.
Source: Hefei Municipal Government Official Gazette (July 15, 2026); Deloitte China “Low-Altitude Economy Report” (June 2026); CAAC Type Certification Database (July 2026) | July 2026