According to Reuters, on August 13, Chinese engineers tested the world's largest payload drone over the weekend.

With a payload of up to 2 tons, the twin-engine drone was developed by the state-funded Tengden Science and Technology Innovation Company in Sichuan province.

The plane has a wingspan of 16.1m and a height of 4.6m.

Chinese transport companies are now planning to launch both manned and unmanned air taxi services.

The move comes after the country eased airspace restrictions and introduced incentives to boost the development of its low-altitude economy.

Low-altitude economy is a concept related to economic activities that take place in space not too high above the ground, usually below 3,000m.

This is the area where drones, helicopters and other flying vehicles operate to provide services such as cargo and passenger transport, surveillance and delivery.

In April, the aviation authority granted a manufacturing certificate to Guangzhou-based EHang Holdings for its passenger drone.

This is China's first certification for a drone that can autonomously carry passengers.

In addition, China has begun making commercial deliveries by drone.

In May, Phoenix Wings Logistics, a subsidiary of SF Express, transported fresh fruit from Hainan Island to Guangdong Province using the Fengzhou-90 drone developed by SF, a unit of SF Holding.

According to industry experts, cargo drones promise to shorten delivery times and reduce shipping costs; while also expanding delivery locations to places lacking traditional aviation facilities, such as rooftops of densely populated cities.

In a report this year, the Chinese government for the first time identified the low-end economy as a new growth engine, a “new productive force” in areas such as passenger and cargo transportation.

The Civil Aviation Administration of China (CAAC) predicts that the economy will grow fourfold from 2023 to 2 trillion yuan ($279 billion) by 2030.

China is now the world leader in drone production. Manufacturers are continuing to experiment with larger payloads.