The Sky Is the Limit, But the Rules Are Grounded: China’s eVTOL Ecosystem and the CAAC Runway.
While the West, primarily led by the FAA in the US and EASA in Europe, has focused largely on piloted, fixed-wing-like eVTOL designs, China has chosen a unique, rapid, and top-down approach. The central question for anyone interested in this nascent but potentially multi-trillion-dollar industry is simple: How exactly is the Civil Aviation Administration of China (CAAC) paving the regulatory runway for this revolution?
The CAAC’s strategy is not just about keeping pace; it’s about setting the global tempo, turning a high-tech concept into a nationwide, commercially viable network.
The CAAC’s Game-Changing Blueprint: Certifying the Uncertifiable
In the conservative world of aviation, safety standards are painstakingly built over decades. eVTOLs, with their reliance on distributed electric propulsion (DEP), complex flight control software, and autonomous capabilities, challenge every one of those old rules. The challenge for any regulator is to be fast enough to enable the technology without compromising safety.
The CAAC, driven by the national "Low-Altitude Economy" strategy—a key directive from the 14th Five-Year Plan—has tackled this challenge with remarkable speed and specificity.
EHang: The World’s First Regulatory Touchdown
The clearest evidence of the CAAC’s unique approach is the monumental certification of the EHang EH216-S.
EHang’s success is a story not just of engineering, but of regulatory collaboration. In October 2023, the EH216-S became the first passenger-carrying, autonomous (pilotless) eVTOL in the world to be granted a Type Certificate (TC) by a national aviation authority. This was a critical, world-first milestone, proving that the CAAC was willing and able to create a certification framework for a completely novel, unmanned passenger aircraft.
The process was anything but traditional. The CAAC, unable to apply decades-old fixed-wing or helicopter rules, developed Special Conditions for the EH216-S UAV System. This hybrid regulatory pathway combined the safety standards of conventional aviation with the emerging frameworks for Unmanned Aircraft Systems (UAS). It meant the aircraft’s design, manufacturing, and operational readiness were validated across over 500 specific test items and more than 40,000 test flights.
The story didn't end with the Type Certificate. EHang has since secured the full trifecta of required approvals: the TC (design approval), the Production Certificate (PC), and the Standard Airworthiness Certificates (AC) for mass-produced aircraft. This full regulatory clearance, achieved by early 2025, allows EHang to not only fly demonstration routes but to begin genuine commercial operations. This is the difference between a successful prototype and a viable business.
From Passengers to Payload: Scaling the Certification Ladder
The CAAC is not putting all its eggs in the passenger basket. They have clearly identified cargo and logistics as an equally vital, lower-risk entry point for the eVTOL market.
The certification of AutoFlight's CarryAll (V2000CG) demonstrates the CAAC's methodical scaling of the regulatory framework. The CarryAll, an autonomous cargo eVTOL with a maximum takeoff weight of 2,000 kilograms—significantly heavier than EHang's two-seater—received its full suite of certificates, becoming the first one-ton-plus eVTOL cargo aircraft to do so.
This is significant because it establishes a clear path for heavier, more complex eVTOLs to follow. The process for the CarryAll, combining elements of existing CCAR-92 rules for unmanned aircraft with CCAR-21-R4 rules for general aviation, set a benchmark for larger platforms. Cargo operations are seen as a safe stepping stone to passenger services, providing invaluable data on battery life, flight reliability, maintenance cycles, and, critically, air traffic integration under real-world commercial pressures. AutoFlight, like EHang, is now poised to leverage this experience for its piloted passenger air taxi, the Prosperity, which is already undergoing its own certification process.
The Invisible Infrastructure: Air Traffic Management Integration
Type certification is only half the battle. Getting a permit to fly a single aircraft safely is one thing; operating hundreds of them across a dense urban sprawl is another. The real logistical hurdle is Air Traffic Management (ATM), or how these new, low-altitude vehicles will safely share the sky with drones, helicopters, and potentially, traditional general aviation aircraft.
The CAAC has been proactive in tackling this "invisible infrastructure" challenge, focusing on a top-down, central government approach that is vastly different from the more fragmented, local-led initiatives seen in the West.
Redefining the Sky: New Airspace Classification
A major regulatory leap came with the formulation of the National Airspace Basic Classification Method. Recognising that the existing classification was insufficient for the coming wave of low-altitude aircraft, the CAAC formally added two new, crucial classifications:
Class G Airspace: Designated for flights below 300 meters (approximately 1,000 feet) True Altitude.
Class W Airspace: An even lower, highly localised classification for operations below 120 meters.
This simple bureaucratic step has profound implications. By officially segmenting and classifying the lower airspace, the CAAC provides the necessary legal and operational foundation for the development of Unmanned Traffic Management (UTM) systems. It creates the "lanes" in the sky where eVTOLs, drones, and future air taxis can operate safely and predictably, separated from commercial airliner routes.
The Low-Altitude Economy and the UTM Core
The overarching policy framework, the "Low-Altitude Economy," demands a robust digital infrastructure. The CAAC's 14th Five-Year Plan explicitly calls for promoting a logistics distribution system in regional corridors, most notably the highly urbanised Guangdong-Hong Kong-Macao Greater Bay Area (GBA). This will be the initial proving ground for an operational UTM system.
The core of this strategy is the building of a digital supervision and service platform with UTM at its centre. This platform will be responsible for:
Automated Flight Planning and Approval: Streamlining the process for operators to secure flight clearances.
Real-Time Tracking and Monitoring: Ensuring the CAAC and local authorities have full visibility over the flow of low-altitude traffic.
Conflict Detection: Using AI and sophisticated algorithms to prevent mid-air collisions in dense, complex environments.
In short, China is building a highly centralised, digitally-powered air traffic control system designed specifically to handle a high volume of autonomous and semi-autonomous flights from day one. This proactive approach contrasts with the gradual, often reactive model in other regions.
Building the Ground Up: Vertiport Standards
To complement the airspace rules, China's Civil Airports Association released the Technical Requirements for Electric Vertical Take-off and Landing Aircraft (eVTOL) Landing Fields in 2024. This first-of-its-kind standard addresses everything from physical characteristics and obstacle restrictions to structural design and specialised charging facilities. Without a clear standard for ground infrastructure (vertiports), air taxi networks cannot scale. By setting this standard early, the CAAC has provided a clear roadmap for urban planners and private developers, accelerating investment in the necessary ground-side infrastructure.
The Fierce Domestic Competition: A Race for the Network
The clear regulatory path has fueled a heated, high-stakes competition among domestic manufacturers. This isn't just a race to build a certified aircraft; it's a race to establish the first commercially viable air taxi network. The winner of this ecosystem race in China will likely become a major global player.
EHang: The First-Mover Advantage
With the full sweep of CAAC certificates, EHang has an undeniable first-mover advantage. The company is now focused on operationalising its achievement, moving from demonstration flights to commercial operations, initially focusing on aerial tourism and sightseeing flights in designated UAM Operation Demonstration Centres, such as the one established in Shenzhen’s Bao'an District. The goal is to accumulate operational data, build public trust, and, most importantly, start generating revenue that can fund expansion and technology refinement.
AutoFlight and XPeng AeroHT: The Heavyweights and the EV Influence
The market is far from a one-horse race.
AutoFlight, while focusing on cargo first, is a significant contender with its sights set on the passenger market (Prosperity). Its success with a heavier aircraft shows that a parallel regulatory and engineering track is open for more conventional-looking eVTOLs with longer range and payload.
Meanwhile, the arrival of XPeng AeroHT introduces the tremendous resources and manufacturing expertise of the Electric Vehicle (EV) sector. Leveraging XPeng's deep pockets and experience in mass-producing complex electric vehicles, AeroHT is focused on a different approach: a modular "Land Aircraft Carrier" where the eVTOL unit is paired with a terrestrial vehicle. This cross-sector approach brings an intense manufacturing capability, mirroring how China quickly dominated the global EV market. XPeng's focus on both domestic and key international markets further underscores the intensity of the competition.
The Emerging Players: Volant and TCab Tech
The ecosystem is also diversifying with smaller, ambitious players like Volant and TCab Tech, the latter of which is aiming for a highly competitive price point for its aircraft, suggesting an aggressive strategy to make air travel truly accessible. The intense clustering of these firms in economic zones like the Greater Bay Area is not accidental; it's a direct outcome of local governments actively supporting and investing in the "Low-Altitude Economy" as a key strategic growth sector.
A Regulatory Model for the World?
The story of Urban Air Mobility in China is fundamentally a story of regulatory enablement. While Western regulators have adopted a more iterative, often consensus-driven approach—prioritising the conversion of existing rules to fit new technology—the CAAC has taken a centralised, top-down, and highly bespoke path. They have created specific rules for specific, novel aircraft, and in doing so, have provided domestic players with an unambiguous, accelerating regulatory runway.
This proactive government-industry partnership, backed by explicit national economic policy, has allowed Chinese firms to achieve regulatory milestones (like EHang's global first TC) well ahead of their international competitors. The rapid establishment of a new airspace classification, vertiport standards, and a dedicated UTM strategy further ensures that the market can scale as soon as the certified aircraft roll off the production line.
The ultimate success of China's eVTOL ecosystem will depend on flawless safety records and seamless air traffic integration. However, by establishing a clear, fast, and comprehensive regulatory framework, the Civil Aviation Administration of China has done its part: it has given its domestic champions the green light to take off and compete for the future of urban transportation. The race is now on, and in the air, China has taken the early lead.