Hunan: AI + Low Altitude Economy
First, a preamble.
Today’s [narrow] AI boom mirrors the early internet—built on open-source foundations like Linux and Python that powered a wave of borderless innovation. China, more than any other nation, seems to have learned from that playbook.
By backing the open-sourcing of its advanced AI models, Beijing has executed a quiet yet potent strategy — commoditize the foundations of AI, make them free, and let the world build on top.
The result is a Trojan Horse of influence. As Chinese open-source models are integrated into products and services worldwide, the training data, underlying assumptions, and cultural norms embedded in these systems have the potential to quietly shape standards, expectations, and development practices across industries and the global AI ecosystem.
And the fact that Silicon Valley—the heart of American innovation—is not-so-quietly building its next generation of products atop Chinese AI foundations is perhaps the most telling sign of how effectively China’s strategy has unfolded.
The choice of models appears to be guided more by utility, speed, and cost than by geopolitics.
China’s pursuit of AI leadership has been deliberate and multi-layered.
I argue that China has cultivated one of the world’s most robust AI talent pipelines by deliberately shaping the conditions for it—through long-term, top-down planning and substantial socio-economic investment, including in education and poverty alleviation.
When applied to a population of 1.4 billion, this creates an unparalleled engine for technological development.
It is no coincidence that the nation now boasts the output of 1,509 large AI models—the highest globally—and an industrial ecosystem supported by over 5,100 AI companies and 71 AI unicorns — driving innovation across everything from foundational chips to sector-specific applications (like the low-altitude economy).
Moreover, China has become the largest holder of AI-related patents globally, accounting for 60% of the total, according to the China National Intellectual Property Administration).
2017-Today
Remember when Tiktok was Music.ly?
Beijing published its first national AI strategy in 2017, aiming to become a global AI leader and a “major AI innovation center in the world,” positioning AI as a driver of both technological advancement and economic growth.
Since then, the country has steadily expanded its AI governance and regulatory framework, implementing laws and measures covering data security, cybersecurity, personal information protection, and algorithmic oversight — all aligned with national policy priorities.
In 2023, President Xi Jinping launched the Global AI Governance Initiative (GAIGI), outlining principles for responsible and safe AI deployment worldwide.
Building on this, Premier Li Qiang unveiled the 2025 Action Plan for Global Artificial Intelligence Governance at the World AI Conference this July, detailing a 13-point roadmap emphasizing international standards, inclusive digital infrastructure, sectoral applications, risk management, open-source and cross-border collaboration, and sustainable development.
On August 26, the State Council issued the Opinion on Deepening the Implementation of the “Artificial Intelligence Plus” Initiative, promoting the extensive integration of AI across all sectors and fields of the economy and society.
The Opinions focus on six key action areas—scientific and technological advancement, industrial development, consumption enhancement, public welfare, governance capabilities, and global cooperation—covering virtually all facets of economic and social progress.
The Opinions also set out three development phases with specific targets:
By 2027: The initial rollout of next-generation smart terminals, smart devices, and other AI applications should be well underway.
By 2030: Adoption is expected to expand significantly across industries.
By 2035: More than 90% of relevant devices and applications should be integrated nationwide.
By the final phase in 2035, China aims to enter a new stage of smart economic and societal development, providing strong support for the broader goal of socialist modernization.
AI and the Low-Altitude Economy
Make no mistake — China’s ecosystem of OEMs, technology providers, academic and research institutions, industry partners, and government agencies is working to build a full-stack, AI-powered low-altitude sector that integrates aircraft, airspace management, and ground infrastructure—including electric vehicles—into a unified, intelligent network.
The country is placing AI-related capabilities at the center of this emerging sector, using it to manage and optimize UAV logistics, aerial agricultural operations, and other urban air activities.
Provinces are developing smart networks that monitor drones in real time, coordinate flight paths, ensure safety through video identification and automated oversight, and manage 3D airspace to optimize routing and prevent collisions while integrating seamlessly with existing air traffic systems.
Autonomous control systems and smart cockpits under development will allow drones and eVTOL aircraft to navigate obstacles, land with precision, and operate with minimal human intervention — in both urban and rural environments.
On the ground, vertiports, charging stations, and sensor networks will provide the infrastructure necessary to maintain operational security, safety, and reliability.
Operational data from current deployments is already informing eVTOL design and algorithm development, effectively advancing the maturation of China’s ecosystem.
Through cooperation models and international partnerships, China’s lessons learned are expected to benefit other countries, including in the MENA region, helping them accelerate their own low-altitude and AI-enabled economic initiatives.
Collectively, these efforts aim to transform the low-altitude economy from concept into a fully functioning, AI-enabled sector—albeit step by step.
Hunan’s AI+ Implementation Plan
This leads me to Hunan Province—the real focus of this post.
Building on the national AI+ strategy, Hunan has laid out a roadmap to operationalize China’s vision at the provincial level.
On October 30, the People’s Government of Hunan issued the Implementation Plan for Advancing the State Council’s “Artificial Intelligence Plus” Initiative, positioning artificial intelligence as a central driver for cultivating “new quality productive forces” and accelerating the province into a national hub for AI innovation, industrial clustering, and application demonstration.
The plan sets ambitious targets for 2027 and 2030.
By 2027, Hunan’s AI industry is expected to exceed 120 billion yuan, supported by 5.25 EFlops of computing power, roughly 50 large models, and 200 application scenarios.
By 2030, the industry is projected to surpass 200 billion yuan, with 12 EFlops of computing power and over 90% adoption of next-generation intelligent terminals, intelligent agents, and other AI applications.
The Implementation Plan identifies five priority areas—science and technology, industrial development, consumption upgrading, public well-being, and governance—covering 14 specific fields, including basic research, advanced manufacturing, culture and tourism, autonomous driving, and healthcare.
In industrial development, Hunan plans to promote deep integration of AI with its “4×4” modern industrial system, centered on manufacturing-oriented large models to enhance intelligent transformation across key industrial chains such as engineering machinery, aerospace, and new energy.
For the “AI+” low-altitude economy, the plan calls for a unified provincial smart network integrating safety monitoring, video identification, and real-time flight management.
Building on the province’s 3D airspace platform, Hunan will construct a grid-based airspace with graded flight corridors, advance intelligent traffic management, and strengthen autonomous control and smart cockpit capabilities.
The province also aims to develop drone logistics nodes to support intercity transport and last-mile delivery, expand drone-based aerial commuting, deploy ground-based perception systems, and enhance countermeasure facilities to ensure low-altitude operational security.
Finally, the plan outlines ten demonstration scenarios, including all-terrain AI-powered power grid inspections and integrated space-air-ground flood control and emergency response systems, alongside forward-looking applications leveraging the low-altitude smart network.
These initiatives signal Hunan’s ambition to translate China’s AI+ vision into tangible, real-world outcomes while serving as a model for other provinces and regions.
Below, I have outlined the scenarios as they relate to the low-altitude economy. The full plan follows, including attachments.
Attachment 2 contains Hunan Province’s ‘AI+’ Ten Demonstration Scenarios, and Attachment 3 presents Hunan Province’s ‘AI+’ Ten Future Scenarios.”
Attachment 5 highlights Hunan Province’s “AI+” Ten Support Measures (aka subsidies).
I would argue that that the Demonstration Applications contained in Attachment 2 are quite impressive.
Let’s get into it.