The Symbiotic Architecture of China’s Low-Altitude and JCAS Economies: A Technical and Geopolitical Analysis of the Emerging 6G Stack

1. Introduction: The Strategic Convergence of Airspace and Algorithms

The trajectory of global telecommunications is currently witnessing a bifurcation in strategic priorities, nowhere more evident than in the People’s Republic of China. While the Western world grapples with the monetization of 5G infrastructure through consumer broadband and enterprise private networks, China has initiated a state-directed industrial maneuver to activate a new economic domain: the Low-Altitude Economy (LAE). This domain, defined by airspace operations below 3,000 meters, is not merely a logistical frontier for drone deliveries but serves as the primary deployment vector for the next generation of wireless technology—Integrated Sensing and Communication (ISAC), or Joint Communication and Sensing (JCAS).

The interplay between the LAE, the JCAS economy, and the indigenous Chinese technology stack constitutes a closed-loop ecosystem designed to secure technological autarky, drive domestic consumption, and establish de facto global standards for 6G. This report posits that the Low-Altitude Economy is the “killer application” that justifies the massive capital expenditure required for 5G-Advanced (5G-A) and early 6G networks. By transforming cellular base stations into networked radar systems, Chinese operators are creating a ubiquitous sensory grid that monetizes the physical environment itself—a paradigm shift from “connecting people” to “perceiving the world.”

This analysis explores the granular technical specifications, regulatory frameworks, and geopolitical implications of this convergence. It examines how state planning, exemplified by the 15th Five-Year Plan, orchestrates the behavior of state-owned enterprises (China Mobile, China Telecom) and national champions (Huawei, ZTE, DJI, Sany) to construct a verticalized technology stack that is resilient to external sanctions and poised for global export.

1.1 The Policy Superstructure: From “Dikong Jingji” to National Strategy

The concept of the “Low-Altitude Economy” (dikong jingji) has graduated from an experimental transport concept to a “strategic emerging industry” within China’s national planning apparatus. The 15th Five-Year Plan (2026–2030) explicitly elevates the sector alongside quantum technology and artificial intelligence, signaling a departure from growth driven by traditional real estate and infrastructure toward “high-quality development” powered by “New Productive Forces”¹.

The Civil Aviation Administration of China (CAAC) has outlined a roadmap that is aggressive by global standards. While the Federal Aviation Administration (FAA) in the United States and the European Union Aviation Safety Agency (EASA) have adopted phased, risk-averse approaches to Unmanned Aircraft Systems (UAS) integration, prioritizing piloted operations, the CAAC’s regulatory philosophy accepts autonomous, Beyond Visual Line of Sight (BVLOS) operations as a baseline requirement for market viability¹.

Table 1.1: CAAC Market Projections for the Low-Altitude Economy

Milestone Year	Projected Market Size (CNY)	Projected Market Size (USD)	Strategic Focus
2023	~500 Billion	~$70 Billion	Initial pilot zones, regulatory framework establishment.
2025	1.5 Trillion	~$211 Billion	Scale-up of logistics, initial commercial eVTOL routes.
2035	3.5 Trillion	~$490 Billion	Mature ubiquitous network, widespread passenger eVTOL.

Source: Data synthesized from CAAC reports and state media.¹

This planned expansion is not organic; it is engineered. The central government has recognized that the congestion of terrestrial logistics networks and the saturation of the consumer mobile internet market require a spatial expansion of economic activity. By opening the vertical dimension (0–3,000 meters), the state aims to alleviate urban congestion while creating demand for high-end manufacturing (drones, eVTOLs) and advanced network services (5G-A/6G)⁴.

1.2 The “New Productive Forces” Paradigm

The integration of the LAE into the “New Productive Forces” initiative underscores its role as a driver of technological self-reliance. The term, emphasized by the Chinese Communist Party leadership, refers to growth driven by innovation and advanced technology rather than labor or capital accumulation. In this context, the LAE is the crucible for testing indigenous technologies—chips, sensors, AI algorithms, and composite materials—that might otherwise struggle to find immediate mass markets¹.

The symbiotic relationship is clear: the LAE requires ubiquitous, low-latency, high-reliability communication and sensing, which 5G-A/JCAS provides. Conversely, the 5G-A network requires a high-density, high-value use case to justify the deployment of expensive Millimeter Wave (mmWave) and Massive MIMO infrastructure. The LAE provides this justification by demanding a network that can not only transmit video from a drone but also detect and track non-cooperative objects (birds, unauthorized drones) to ensure safety⁵.

2. Infrastructure Layer: The Physics and Economics of JCAS

The technological bedrock of China’s low-altitude ambitions is the transformation of the Radio Access Network (RAN). Traditionally, cellular networks and radar systems have operated as distinct magisteria, utilizing separate spectrum, hardware, and signal processing chains. The JCAS (Joint Communication and Sensing) economy collapses these functions into a single architecture. In China, this is not a theoretical 6G concept for the 2030s; it is being deployed today under the banner of 5G-Advanced (5.5G).

2.1 Technical Architecture of 5G-A Sensing

The core innovation in China’s JCAS deployment is the “native integration” of sensing into the communication waveform. Unlike overlay solutions where a radar module is simply bolted onto a cell tower, Chinese vendors like Huawei and ZTE have re-engineered the Baseband Unit (BBU) and Active Antenna Unit (AAU) to process radar returns using the same Orthogonal Frequency-Division Multiplexing (OFDM) signals used for user data⁶.

2.1.1 Waveform and Spectrum Utilization

The physics of sensing dictates that resolution is a function of bandwidth and frequency. Consequently, Chinese operators are leveraging high-frequency bands to achieve the precision required for tracking small UAVs.

• 4.9 GHz Band: Used extensively by China Mobile, this mid-band frequency offers a compromise between coverage and resolution. It allows for the detection of larger drones and general airspace monitoring⁸.
• Millimeter Wave (mmWave – 26/28 GHz): This band is critical for high-precision sensing. The short wavelengths allow for finer resolution, enabling the system to distinguish between a drone and a bird, or to detect micro-Doppler signatures (the spinning of potential rotors). ZTE has deployed 5G-A mmWave ISAC systems capable of centimeter-level accuracy⁹.
• Terahertz (THz) Frontiers: Looking toward 6G, research institutes like Purple Mountain Laboratories are experimenting with 0.3 THz (300 GHz) bands. These frequencies operate near the optical spectrum, allowing for “imaging sensing” where the network can construct a quasi-photographic image of the target based on its RF reflectivity, achieving millimeter-level resolution¹⁰.

2.1.2 Reconfigurable Intelligent Surfaces (RIS)

A major limitation of high-frequency sensing is line-of-sight (LOS) obstruction. In dense “urban canyons” like Shenzhen or Chongqing, drones often fly behind buildings, severing the radar link. To mitigate this, the Chinese tech stack incorporates Reconfigurable Intelligent Surfaces (RIS).

These are planar metasurfaces composed of thousands of low-cost, programmable elements (varactors or PIN diodes) that can manipulate the phase and amplitude of incident electromagnetic waves. ZTE has demonstrated a commercial-grade 1024-element RIS operating at 28 GHz¹².

• Operational Role: The RIS acts as a “smart mirror.” When a drone flies behind a building, the base station beams the sensing signal to an RIS mounted on a nearby facade, which then reflects the beam toward the drone. This capability extends the “sensory field” of the network into blind spots without requiring additional active base stations¹².

2.2 Commercialization: Sensing as a Service (SaaS)

The economic innovation paralleling the technical one is the “Sensing as a Service” (SaaS) business model. Telecommunications operators are transitioning from selling bandwidth (pipes) to selling environmental intelligence (platforms).

2.2.1 Service Models and Pricing

China Mobile and China Unicom have begun structuring tariffs that monetize the sensing capability. This moves beyond flat-rate data plans into “capability-based” pricing.

• Low-Altitude Security Tariffs: Airports, prisons, and critical infrastructure operators pay for a “virtual fence.” The carrier’s network continuously scans the perimeter; detection events trigger alerts via an API. For example, the Dalian Changhai Airport project demonstrated that a 5G-A ISAC network could replace traditional radar layouts, reducing CAPEX by 25% and deployment space by 30%⁹.
• Logistics Corridors: Drone operators (e.g., Meituan, SF Express) subscribe to “safe flight” packages. These bundles include data connectivity, high-precision positioning (RTK), and real-time obstacle avoidance data derived from the network’s sensing layer.
• Pricing Precedents: While specific B2B contracts are opaque, proxy pricing exists. China Mobile charges approximately 0.05 RMB per API call for QoS (Quality of Service) assurance¹⁴. Similar micro-transaction models are expected for sensing queries (e.g., “Is my flight path clear?”). Enterprise-grade 5G-A packages offering guaranteed uplink speeds (crucial for video) are priced around 30 RMB/month as add-ons, or 1000 RMB/month for fleet-level service assurances¹⁵.

2.2.2 The “Zhongyi” Platform

The commercial aggregation point for these services is China Mobile’s “Zhongyi” capability system. This platform is described as a “4-in-1” low-altitude intelligent internet of things system, integrating:

• Sensing: Radar-like data from 5G-A base stations.
• Connectivity: 5G/4G data links.
• Management: Device authentication and fleet management (OneNET).
• Applications: AI-driven analytics for route planning and conflict detection¹⁷.

The “Zhongyi Lingyun” platform specifically targets the LAE, offering centimeter-level positioning (2–5cm horizontal, 2–8cm vertical) by fusing 5G signals with BeiDou satellite navigation¹⁸. This level of precision, sold as a service, is a prerequisite for the high-density automated flight operations envisioned in the 15th Five-Year Plan.

2.3 The “Network-Based Radar” Advantage

The strategic logic for deploying ISAC lies in the limitations of traditional surveillance. Civil radar is expensive and suffers from ground clutter in cities. Optical cameras are limited by weather and privacy concerns.

The cellular network, however, is ubiquitous. By upgrading existing base stations to support ISAC, China creates a nationwide, all-weather sensor grid. Research indicates that a cellular network-based radar system can effectively track UAV swarms, using the density of base stations to perform multi-static sensing (where one tower transmits and multiple towers receive the echo), significantly improving detection probability compared to monostatic radars¹⁹. The CAAC has validated this approach, recommending location verification thresholds based on cell radius (Inter-Site Distance), effectively writing the cellular network into the aviation safety standards¹⁹.

3. The Indigenous Tech Stack: Silicon Sovereignty

The LAE and JCAS economies are built upon a technology stack that has been meticulously “de-risked” from Western supply chains. Following the imposition of US export controls on advanced semiconductors, China has accelerated the substitution of foreign components with domestic alternatives, creating a “Red Supply Chain” that spans from the chipset to the cloud.

3.1 The Silicon Foundation: Unisoc and Huawei

The semiconductor layer is bifurcated into connectivity (modems) and intelligence (AI processing).

3.1.1 Unisoc: The Connectivity Workhorse

While high-end smartphone SoCs remain a contested battleground, the industrial IoT and drone markets are increasingly standardized on Unisoc (Shanghai) silicon. Unisoc has emerged as the critical enabler for mass-market 5G adoption, filling the void left by potential restrictions on Qualcomm.

• Tangula V516: This is the flagship chipset for the LAE. It is the industry’s first “5G Release 16 Ready” platform. Release 16 is pivotal because it introduces Ultra-Reliable Low-Latency Communication (URLLC) enhancements and 5G positioning features that allow for 1-meter accuracy without GPS²¹. This chip allows drone modules to support “network slicing,” where a specific portion of the spectrum is reserved for critical control signals, immune to congestion from consumer traffic.
• Legacy Node Resilience: Most industrial IoT chips do not require the cutting-edge 3nm or 5nm processes restricted by US sanctions. Unisoc utilizes mature processes (6nm, 12nm) available from domestic foundries or non-restricted global partners²¹. This ensures that the supply of chips for the “New Productive Forces” remains secure even in a scenario of intensified trade war²³.
• Tangula T-Series: For the ground control stations and handheld terminals used by drone operators, Unisoc provides the T770/T820 series (6nm EUV), offering sufficient performance for Android-based flight control apps and video decoding²⁴.

3.1.2 Huawei Ascend: The Edge Intelligence Engine

Processing the massive volume of raw IQ data generated by ISAC base stations requires high-performance computing at the edge. Sending this data to a centralized cloud would incur unacceptable latency and backhaul costs.

• Ascend 310: Huawei integrates its proprietary Ascend 310 AI processor directly into the Baseband Units (BBU) and Mobile Edge Computing (MEC) nodes of the 5G-A network²⁶. The Ascend 310 is a low-power (8W) Neural Processing Unit (NPU) designed for inference.
• Operational Role: Inside the base station, the Ascend 310 runs algorithms that filter radar clutter (buildings, trees) from moving targets (drones). It performs “sensor fusion,” combining radar data with optical feed data in real-time. This “AI Inside” architecture is a proprietary advantage of Huawei’s RAN equipment, enabling the “Intelligent RAN” concept that Western open-RAN architectures struggle to replicate with general-purpose servers due to power/cost constraints²⁸.

3.2 The Module and Device Ecosystem

The connection between the drone and the network is mediated by communication modules. This layer is dominated by Chinese firms Quectel and Fibocom, which collectively control a vast majority of the global market.

3.2.1 RedCap: The Cost-Reduction Catalyst

To scale from thousands of drones to millions, the cost of the 5G modem must drop. The industry is aggressively adopting 5G RedCap (Reduced Capability).

• Technology: RedCap simplifies the 5G modem by reducing bandwidth (e.g., to 20 MHz) and antenna complexity (1 or 2 antennas instead of 4), cutting costs by 50–70% while retaining critical 5G features like slicing and low latency²⁹.
• Adoption: Huawei and China Mobile are spearheading the deployment of RedCap for “mid-speed” IoT, which includes logistics drones and video surveillance. The target price for RedCap modules is approaching 100 RMB (~\$14), a price point that makes 5G viable for even low-cost delivery drones³⁰.
• Implementation: Module makers like Fibocom (e.g., FM650) and Quectel utilize Unisoc or MediaTek chipsets to produce these RedCap modules, ensuring the entire component chain—from IP to manufacturing—is insulated from Western IP restrictions³¹.

3.2.2 The DJI Ecosystem and “Lock-In”

DJI, holding over 70% of the global drone market, serves as the primary “user equipment” (UE) in this stack.

• Cellular Dongle 2: DJI enables network integration via the “Cellular Dongle,” a modular 4G/5G modem that plugs into the drone³³. This device allows the drone to switch seamlessly between O4 (DJI’s proprietary radio link) and the 4G/5G network.
• Network Effect: This creates a powerful lock-in. To utilize BVLOS features in China, a user must use a compliant drone (DJI), equipped with a compliant dongle (supports Chinese bands/slicing), connected to a state-owned network (China Mobile). This integration facilitates the enforcement of real-name registration and flight path monitoring, as the network connection is tied to a verified identity (SIM card)³⁴.

3.3 The Platform Layer: OneNET and UOM

The software layer acts as the operating system for the low-altitude economy, handling identity, data, and control.

• OneNET: China Mobile’s IoT platform, OneNET, serves as the device management layer. It handles the authentication and data ingestion for the millions of sensors and drones entering the network. It provides the “northbound” APIs that allow application developers (e.g., a delivery app) to request drone status or network quality data³⁵.
• UOM (Unmanned Aircraft Operation Management): The CAAC operates the Civil Unmanned Aerial Vehicle Integrated Management Platform (UOM). This is the central registry for the “Real-Name Registration” system. Since 2017, all drones over 250g must be registered here. The system links the drone’s serial number to the owner’s national ID and the SIM card in the cellular module³⁷. This creates a digital thread of accountability that is structurally integrated into the tech stack: no registration = no network access = no flight.

4. Vertical Integration: Case Studies in Industrial Autonomy

The theoretical capabilities of the JCAS/LAE stack are being validated in high-intensity industrial environments. These “verticals” serve as proving grounds, generating the operational data needed to refine the technology before mass consumer rollout.

4.1 Smart Mining: The “Handshake” of Giants

The mining sector represents the most mature implementation of industrial 5G in China, driven by stringent safety regulations and the desire to remove humans from hazardous environments.

• The Project: The Huaneng Yimin Open-Pit Mine in Inner Mongolia operates a fleet of 100 autonomous electric mining trucks³⁹.
• The Players: The trucks are manufactured by Sany Heavy Industry and XCMG, the network is built by Huawei, and the operator is China Huaneng.
• The Tech Stack: The trucks (e.g., Sany SKT90E) are equipped with Huawei 5G modules. The network provides a 500 Mbps uplink to backhaul HD video from multiple onboard cameras, allowing a remote operator to intervene if the AI driving system encounters an edge case⁴⁰. Crucially, the system uses 5G positioning to supplement GNSS, which can be unreliable in deep pits due to satellite occlusion. The 20ms latency of the 5G network ensures that the “handshake” between the truck’s control unit and the cloud dispatch system is instantaneous, preventing collisions in the dynamic mine environment⁴¹.
• Significance: This deployment proves that the domestic stack (Sany + Huawei + China Mobile) can deliver mission-critical reliability (99.999%) without reliance on Western technology.

4.2 Shenzhen: The Logistics Superhighway

Shenzhen serves as the urban laboratory for the consumer-facing LAE.

• The Scenario: Meituan and SF Express operate dense networks of delivery drones ferrying food and medical supplies between “hubs” (rooftops, parks) and “spokes” (residential compounds).
• The Network Role: These operations are entirely dependent on the Low-Altitude Intelligent Network. The 5G-A ISAC network acts as a safety layer. In tests in Nansha and Shenzhen, the network demonstrated the ability to track non-cooperative targets (like hobbyist drones or kites) and alert the commercial drones to alter their paths⁸.
• Subsidies: The Shenzhen government’s subsidy policy (up to 30 million RMB/year per enterprise) has de-risked the capital investment required to set up this infrastructure. Subsidies cover everything from type certification (15 million RMB for eVTOLs) to the construction of vertiports and the purchase of insurance⁴³.

5. The Economics of the Stack: Monetization and Incentives

The sustainability of the LAE depends on transitioning from government-funded pilots to self-sustaining business models.

5.1 Monetizing the Network

China Mobile and its peers are pioneering new revenue models that reflect the value of “certainty” in an uncertain environment.

• Quality of Service (QoS) Monetization: The operator charges a premium for “network slicing.” A logistics drone carrying a time-sensitive medical sample pays for a “Gold” slice with guaranteed latency and bandwidth, while a survey drone might use a “Silver” slice. This is operationalized via APIs where the application developer pays per invocation (e.g., 0.05 RMB/call)¹⁴.
• Sensing Data Sales: The “Sensing as a Service” model allows the operator to sell the data generated by the base station. An urban planner might buy aggregate traffic data; a security firm might buy intrusion alerts. This turns the base station into a revenue-generating asset beyond simple connectivity⁴⁵.

5.2 The Subsidy Ecosystem

The Chinese state uses subsidies to “prime the pump.”

• Direct Financial Injection: Shenzhen’s policy of offering 200,000 RMB for opening new drone routes serves to offset the initial unprofitability of low-volume routes⁴³.
• Infrastructure Subsidies: Local governments often pay for the 5G base station upgrades required for ISAC, effectively subsidizing the operator’s CAPEX. This state-capital alignment allows Chinese operators to deploy advanced technology ahead of the demand curve, a luxury Western operators (beholden to quarterly shareholder returns) rarely enjoy.

6. Geopolitical Implications and Future Outlook

The development of the LAE/JCAS stack is a strategic maneuver in the broader US-China technological competition.

6.1 Standardization and the “First Mover” Advantage

While Western vendors like Ericsson and Nokia view ISAC primarily as a 6G feature to be standardized in 3GPP Release 20 (expected ~2028), China is deploying it now in Release 18/19 (5G-Advanced)⁴⁶.

• Setting the Standard: By generating petabytes of real-world operational data from networks in Shenzhen and Hangzhou, Chinese vendors can dominate the standardization process. They can propose channel models and performance metrics based on empirical evidence, forcing the global standard to converge toward their existing implementations⁴⁸.
• Export Potential: Once matured, this stack (Drone + Network + Platform) becomes a powerful export product for Belt and Road nations looking to modernize their infrastructure (“Smart Cities in a Box”), potentially creating a bifurcated global technology landscape.

6.2 Supply Chain Resilience

The shift to Unisoc and Huawei Ascend chips creates a “hardened” supply chain. Even if US sanctions tighten further on high-end AI training GPUs (like NVIDIA H100s), the inference and connectivity chips required to run the LAE are largely within China’s domestic manufacturing capability (legacy nodes)²³. This ensures the continuity of the LAE strategy regardless of geopolitical winds.

6.3 Future Horizons: 2030 and Beyond

As the 15th Five-Year Plan concludes in 2030, the technology will evolve toward higher frequencies.

• Terahertz (THz): Research by Purple Mountain Laboratories and ZTE is pushing into the 300 GHz+ bands. These frequencies offer the bandwidth for Tbps speeds and the wavelength for millimeter-level imaging. This will allow the network to not just detect that a drone is there, but to image it to identify the model or payload¹⁰.
• Space-Air-Ground Integration: The “Tengyun” aerospace plane and low-orbit satellite constellations (GW/G60) will integrate with the terrestrial 5G network, extending the LAE to the edge of space and ensuring global coverage for Chinese logistics networks⁵⁰.

7. Conclusion

The relationship between the 6G Low-Altitude Economy, the JCAS economy, and the Chinese tech stack is one of mutual necessity. The economic promise of the LAE justifies the massive infrastructure investment in JCAS; the technical capabilities of JCAS enable the safe, autonomous scaling of the LAE; and the indigenous tech stack ensures that this ecosystem remains secure and sovereign.

China is not merely building better drones; it is building the environment in which drones operate. By embedding sensing into the very atmosphere via the cellular network, China is creating a physical internet where the movement of atoms is managed with the same efficiency as the movement of bits. For the global telecommunications and aviation industries, this represents a formidable challenge: the standard for the future of airspace is being written today in the skies over Shenzhen, powered by a tech stack that is increasingly entirely Chinese.

8. Comparative Analysis: Divergent Paths to the Digital Airspace

To fully appreciate the significance of China’s strategy, it is necessary to contrast it with the prevailing approaches in the United States and Europe. The divergence is not merely technical but philosophical, rooted in differing views on the role of the state in market creation and infrastructure provision.

8.1 The “Galapagos” Risk vs. First-Mover Advantage

China’s aggressive deployment of pre-standard ISAC technologies (5G-A) carries the risk of creating a “Galapagos” effect—a highly advanced but isolated ecosystem incompatible with global standards.

• Western Approach: The US and EU, through bodies like the O-RAN Alliance and the Next G Alliance, prioritize open interfaces and interoperability. The focus is on disaggregation—separating hardware from software to prevent vendor lock-in. 6G ISAC is viewed as a long-term research goal, with commercialization targeted for 2030+ to ensure a unified global standard⁴⁸.
• Chinese Approach: China prioritizes performance and speed over openness. The “handshake” between Huawei networks and Sany trucks is proprietary and optimized. By moving first, China bets that its domestic market scale (1.4 billion people, massive industrial base) is large enough to sustain its own ecosystem, and that its Belt and Road partners will adopt its standards simply because they are available, proven, and cheaper⁴⁸.

Table 8.1: Comparative Deployment Timelines

Feature	China (Huawei/ZTE/China Mobile)	West (Ericsson/Nokia/US Carriers)
ISAC Deployment	Commercial pilots (2024/2025) via 5G-A.	Research/Standardization (2028–2030) via 6G.
Spectrum	Sub-6 GHz (4.9 GHz) + mmWave.	Focus on mmWave and FR3 (7–15 GHz) for 6G.
Drone Integration	Network-centric (SIM-based, Real-Name).	Device-centric (Remote ID broadcast).
Funding Model	State-directed infrastructure investment.	Private sector CAPEX based on ROI.

8.2 The Surveillance Dividend

The distinct approach to drone identity highlights a fundamental difference in governance.

• Western Remote ID: The FAA’s Remote ID rule requires drones to broadcast identity and location via local radio signals (Wi-Fi/Bluetooth). It is a decentralized, local safety mechanism.
• Chinese Network ID: The CAAC’s system, integrated with the 5G stack, centralizes all data. The drone connects to the UOM platform via the cellular network. This provides the state with a real-time, pan-national view of all low-altitude traffic. While this raises privacy concerns in the West, in China, it is the enabler of the industry. The state permits BVLOS flights precisely because it has total visibility and control. The tech stack provides the “surveillance dividend” that buys regulatory permission for autonomy³⁷.

8.3 Innovation Velocity in Hardware

The contrasting regulatory environments drive different innovation velocities.

• Iterative Hardware: Chinese drone makers like DJI can iterate hardware rapidly because the domestic testing environment is vast and supported by the network. A new RedCap module from Quectel can be tested in a live 5G-A network in Shenzhen immediately.
• Western Constraints: Western drone firms often face a patchwork of regulations and a lack of ubiquitous cellular support for drones (interference issues aloft are a major concern for US carriers). This slows the feedback loop between hardware design and network performance⁵¹.

9. Implications for Global Stakeholders

The consolidation of the China Stack for the Low-Altitude Economy has ripple effects beyond its borders.

• For Global Telcos: The “Sensing as a Service” model piloted by China Mobile offers a roadmap for reversing the commoditization of connectivity. Western operators should closely monitor the monetization of ISAC APIs in China to gauge the viability of similar models in their markets⁴⁵.
• For Policymakers: The “China Stack” presents a challenge to supply chain diversification. If the most advanced, cost-effective drones and the networks that manage them are Chinese, “de-risking” becomes economically punitive. The US tariffs on Chinese drones attempt to address this, but without a comparable domestic ecosystem (chips + modules + networks), the gap may widen⁵¹.
• For the 6G Standard: The sheer volume of ISAC patent filings and standard contributions from Chinese firms (Huawei, ZTE, CATT) ensures that the eventual 3GPP Release 20/21 standards will be heavily influenced by Chinese IP. Global stakeholders must engage with these contributions to ensure the 6G standard remains global and not fragmented⁴⁸.

In sum, China’s Low-Altitude Economy is not a speculative bubble; it is a structural transformation of the digital and physical infrastructure, underpinned by a coherent, sovereign technology stack. It represents the first tangible manifestation of the “Cyber-Physical System” promised by 6G, delivered years ahead of schedule through the sheer force of state will and industrial integration.