China has positioned the low-altitude economy as a cornerstone of its future industrial strategy, with drones serving as the linchpin of this burgeoning sector. Leveraging its early entry into the drone industry, China has secured a dominant global market share, accounting for 70% of commercial drone sales worldwide. This leadership stems from a combination of state-backed technological advancements and cost-effective manufacturing, enabling Chinese firms to outpace international competitors.

The Chinese companies complain about America's non-tariff barriers, but many foreign car manufacturers and brands want to enter the Chinese market—what company hasn't returned defeated?

China's low-altitude economy is developing at a rapid pace, with companies like Aerofugia and Lzlair advancing electric vertical takeoff and landing (eVTOL) technology toward commercial applications. Chinese firms are actively competing for certification, with expectations of widespread commercial deployment beginning in 2026.

The 3rd InnoEx show kicked off in Hong Kong on April 13, 2025, with the low-altitude economy taking center stage. Together with the concurrent 21st HKTDC Hong Kong Electronics Fair (Spring Edition), the exhibitions showcase more than 2,800 companies from 29 countries and regions.

Hong Kong is demonstrating its smart city innovations at InnoEX 2025, with a strong focus on robotic applications developed by various government departments.

Taiwan's ambition to build its own low-Earth orbit (LEO) satellites for strategic autonomy is hitting roadblocks, with experts questioning the feasibility of a small-scale, isolated system. Meanwhile, Foxconn, the island's tech giant, is quietly advancing its role in the global LEO ecosystem, supplying user terminals (UTs) to major players like Eutelsat OneWeb and exploring applications from maritime to autonomous vehicles.

Taiwan's aerospace industry is positioning itself to compete globally through investments in advanced manufacturing technologies, particularly in high-end processing of aviation materials. This development occurs as Taiwan's aerospace supply chain remains unaffected by equivalent tariffs for now, though the industry is focused on long-term readiness for global supply chain shifts.

Taiwan's Aerospace Industrial Development Corp. (AIDC) is approaching the final stages of its current domestic aircraft development initiatives, with its chairman, Hu Kai-Hung, noting that 2026 is anticipated to be a particularly challenging year. Despite this, AIDC's recent operational forecast indicates strong performance in its military sector. This includes a surge in aircraft maintenance contracts and substantial investments in drone countermeasure technologies, which are scheduled for launch in June.

China's "Xinchuan" initiative, a national endeavor to supplant foreign technology and imported products with homegrown capabilities, stands as a cornerstone of its industrial policy. However, the reality on the ground reveals a paradox. Vast stockpiles of semiconductor equipment, procured with fervor, languish unused. Absent sufficient orders, these machines remain dormant, underscoring a stark underutilization of China's ambitious investments in chip-making infrastructure.

China's EV dominance is already global, but the next front is autonomous driving. It's no longer just about the vehicle; it's about the AI-powered stack behind it: maps, sensors, monitoring, and infrastructure. For AI, smart cars aren't just another use case—they're the ultimate proving ground.

The uncertainties regarding the since paused reciprocal tariffs under the Trump administration continue to sweep across global industries, with varying impacts on different sectors. While Taiwan's information technology industry has suffered significant blows, the island's aerospace suppliers appear largely insulated from immediate effects, according to industry executives.