China will ramp up efforts to implement a more proactive fiscal policy in 2025, as adopted at the recently concluded annual Central Economic Work Conference, according to experts.
The conference, which was held in Beijing on Wednesday and Thursday, outlined priorities for maintaining steady economic growth in 2025.
According to the conference, it is important to implement more proactive and effective macro policies and expand domestic demand.
The term "more proactive" signals increased intensity compared to this year's measures, suggesting that the Chinese government will fully use the fiscal policy, according to Yang Zhiyong, head of the Chinese Academy of Fiscal Sciences.
"To make greater efforts is to make full use of the favorable positive factors of our fiscal policy space. The fiscal deficit ratio is relatively low, and there is room for raising the deficit ratio. Therefore, raising the fiscal deficit ratio can provide more funds to promote consumption and investment, and expand domestic demand, thus providing stronger policy support for the sustained recovery and growth of the economy," said Yang.
The phrase "more proactive" also represents the continuity and stability of the country's fiscal policy, indicating the proactive stance of the Chinese government, said Luo Zhiheng, chief economist of Yuekai Securities.
"It sustains the overall fiscal policy tone. The addition of the word 'more' indicates our proactive stance, staying ahead of expectations. By making efforts as early as possible, we aim to deliver a stable expectation. The combination and utilization of fiscal policies will enable policies to show their effects as early as possible, thereby expanding overall demand," said Luo.
Experts also said that the Chinese government will make better use of tools in the policy kit, such as special bonds, to unlock potentials.
The Chinese government also pledged to increase the issuance of ultra-long special treasury bonds and local government special-purpose bonds, and optimize the structure of fiscal expenditure, according to the meeting.
This approach incorporates the benefits of both new and existing policies, according to Yang.
"By optimizing fiscal expenditure structure, we aim to derive benefits from existing policies, which is a vital measure. Through effective fiscal management, we can enhance the efficiency of fiscal funds, thereby making the effects of the policy more pronounced," said Yang.
China to step up efforts to implement more proactive fiscal policy in 2025: experts
China is accelerating efforts to build low-altitude infrastructure, with new takeoff and landing facilities, communication networks, and digital systems being constructed in key cities to facilitate the development of this rapidly growing sector.
Low-altitude economy refers to the economic activities and industries centered around manned and unmanned aerial vehicles operating in the airspace usually within 1,000 meters above the ground.
In southern tech hub of Shenzhen, a newly operational rooftop helipad is a key part of the city's push to expand its low-altitude economy. Originally built for fire safety, the helipad has been repurposed with plans for a new aerial sightseeing route in the surrounding area.
"We've estimated the investment, and it's relatively modest since the foundational infrastructure is already in place. The costs will likely be in the range of a few million yuan. If rooftop helipads are connected, it could create an aerial transportation network that links different buildings together," said Kuang Hu, vice chairman of Guangdong Yuehai Land Group.
Shenzhen aims to complete over 1,200 low-altitude facilities by 2026, with the local government offering subsidies of up to 2 million yuan (over 270,000 U.S. dollars) per project. These efforts are part of a broader strategy to create a seamless low-altitude infrastructure ecosystem that integrates airspace management, flight paths, and services.
"By the end of 2026, the district aims to complete 100 low-altitude infrastructure projects," said Chen Wenlei, deputy director of the Development and Reform Bureau of Luohu District, Shenzhen.
"We are in the process of establishing a comprehensive network that includes infrastructure, airspace management, flight paths, and services. By integrating these four key networks into a unified low-altitude standard system, we aim to promote the seamless opening and integration of low-altitude airspace infrastructure and systems," said Cheng Tao, executive secretary of the Shenzhen Low-altitude Economy Industry Association.
In Shanghai, the East China UAV Base has been approved for testing new drones, technologies, and services within a 1,370-square-kilometer airspace. A newly deployed 5G base station at the base offers both communication and radar-like sensing capabilities, essential for managing low-altitude airspace.
"Currently, the station covers a radius of several kilometers, offering crucial data such as the aircraft's latitude, longitude, altitude, speed, and other key metrics. Once airborne, all types of aircraft require communication. For those flying below 300 meters, we can provide tailored coverage for their flight paths," said Du Yanyan, deputy general manager of the Planning and Technology Department at China Mobile Shanghai.
Experts say that technologies like 5G and the BeiDou navigation system are essential to supporting China's low-altitude infrastructure. However, they emphasize the need for network interoperability to address challenges as drones and aircraft transition between regions.
"The low-altitude communication and sensing networks being developed in various regions each follow different technical approaches. For example, when a drone travels from Area A to Area B, it must switch networks, and addressing these challenges promptly is crucial," said Du Jiadong, head of the network and application group at the Low-altitude Economy Research Center, China Academy of Information and Communications Technology (CAICT).
The Civil Aviation Administration of China estimates that the country's low-altitude market will soar from 500 billion yuan in 2023 to 1.5 trillion yuan in 2025 and as much as 3.5 trillion yuan in 2035.
This year, for the first time, the term "low-altitude economy" was included in the Chinese government's work report, signifying an official endorsement that has emboldened numerous cities.
Infrastructure networks rapidly taking shape to boost low-altitude economy
