Hong Kong Aviation Low-Altitude Economy
Hong Kong is actively developing its low-altitude economy (LAE), a sector that includes economic activities in the airspace below 1,000 meters. The city’s strategy is to become a global hub for high-value supporting services rather than a manufacturer of drones or aircraft. This approach, backed by strong government initiatives, creates significant opportunities for foreign firms, particularly those in professional services, technology, and finance.
Hong Kong’s economic development strategy focuses on its existing strengths as a global financial and professional services center. Instead of competing with the manufacturing prowess of mainland China in producing hardware like drones and electric vertical takeoff and landing (eVTOL) aircraft, Hong Kong is positioning itself to provide the essential services that will enable the industry to thrive. This includes:
• Financial Services: Developing specialized insurance products and financial models for low-altitude operations, a new and complex area.
• Legal and Regulatory Frameworks: Creating clear and predictable rules for airspace use, safety, and cross-boundary operations, which are crucial for attracting international investment.
• Testing and Certification: Establishing itself as a center for testing and certifying low-altitude aircraft and systems, helping manufacturers from mainland China and other regions meet international standards.
• Infrastructure: Planning and developing key infrastructure, such as “vertiports” for takeoffs and landings, and a smart traffic management system for low-altitude air routes.
This strategy is being driven by the government’s establishment of a Working Group on Developing the Low-altitude Economy and the launch of a Regulatory Sandbox. This sandbox allows firms to test innovative applications in a controlled environment, providing valuable data and experience to shape future regulations. The government is also actively amending civil aviation laws to accommodate larger and more advanced unmanned aircraft.
Opportunities for Foreign Firms
Foreign firms can find commercial opportunities in Hong Kong’s low-altitude economy by aligning with this services-oriented approach.
• Technology and Innovation: Companies specializing in airspace management software, traffic control systems, and 3D mapping can partner with local firms and the government to build the necessary digital infrastructure. The focus on a unified data-sharing platform presents a chance for firms with expertise in this area.
• Professional Services: Law firms can advise on the evolving legal landscape, while consulting firms can help companies navigate the new regulatory environment. Actuarial and insurance companies have an opening to create bespoke risk assessment models and insurance products for a nascent industry.
For U.S. companies seeking commercial opportunities aligned with Hong Kong’s efforts to develop a Low Altitude Economy, please reach out to Commercial Specialist Michael Wajntal at Michael.Wajntal@trade.gov.