China's failed airspace auction highlights local financial woes

Property slump spurs interest in tapping 'low altitude economy'

Interest in the so-called low altitude economy, like drone services, is growing in China amid a protracted slump in the real estate sector. © Reuters

KOHEI FUJIMURA, Nikkei staff writer

January 1, 2025 01:38 JST

DALIAN, China -- A short-lived attempt by a Chinese county to sell rights to access local airspace underscores the challenge China's regional governments face in supplementing their plunging income from land-use rights.

Pingyin, in the city of Jinan in Shandong province, held an auction in late November for 30-year rights to operate drone, flight training and other services in local airspace. Shandong Jinyu General Aviation placed the winning bid at 924 million yuan ($127 million).