Hangzhou considers ending dedicated subsidies for low-altitude economy

Hangzhou, the capital of China’s Zhejiang province, is considering ending dedicated financial support for its low-altitude economy, according to the supplied report. The proposal would make Hangzhou the first Chinese city to seek repeal of a full subsidy package for the sector. The low-altitude economy includes activity involving aircraft operating at relatively low elevations, although the source material does not provide a detailed definition or list the specific programmes covered by the funding.

The move follows a deadly crash in June, when a small aircraft hit Beijing’s tallest skyscraper, the report says. It does not provide the number of casualties, the cause of the crash or details of any investigation. The proposal is being presented as a test of whether local financial support for the sector can withstand practical and safety concerns.

The source does not say when Hangzhou’s decision will be made or whether the proposed repeal has been approved. Some analysts cited in the report argue that the change should not be interpreted as evidence of broader policy tightening for China’s low-altitude economy. The supplied material does not identify those analysts or explain what other forms of government support might remain.

The report provides no further details about Hangzhou’s current subsidy package, the companies affected or the city’s stated reasons beyond the proposal described.