“In terms of industrial policy, China's five-year plans have recently been very successful, but less so in other areas. Now, the most important party cadres are gathering in Beijing to formulate the next plan for the next five years. One focus: flying taxis.
China's politics operate not in election cycles, but in planning periods. This is according to experts at the Asia Society Policy Institute (ASPI) in a new analysis. And for the upcoming planning period, arguably the most important meeting is taking place in Beijing. Around 370 key party cadres are meeting to define the guidelines for the 15th Five-Year Plan. Officially, this plan, which covers the years 2026 to 2030, is to be adopted next March at the National People's Congress, China's version of a parliament.
The five-year plans show where China wants to develop, especially in economic and industrial policy terms. Five years ago, President Xi Jinping gave the party cadres two guiding principles: the dual circulation strategy and high-quality development. The dual circulation strategy aimed to strengthen both domestic consumption and exports.
Given the persistent deflation, the boost to consumption has been largely unsuccessful; producer prices have been falling for almost three years, and consumer prices are stagnating. Consumption is suffering from the real estate crisis, and youth unemployment remains high. The high debt levels of many local governments raise questions about the extent to which the state is still able to raise the large sums needed for industrial promotion. The increase in birth rates, which was also envisioned in the plans, has not yet materialized.
Exports and the strengthening of emerging industries have fared better. No example illustrates this better than the boom in Chinese car exports, which have risen from one million vehicles five years ago to more than six million this year.” "Technologically, the last five-year plan was definitely a success," says Jost Wübbeke, founder of the China consulting firm Sinolytics in Berlin. "In many areas, China has expanded its leadership, which was not the case five to ten years ago."
China's stronger position in the trade war, in which the People's Republic can better withstand the high US tariffs thanks to increased exports to other countries, is a consequence of this strategy. Only about one-eighth of Chinese exports now go directly to the US, although the actual share is likely somewhat higher due to transshipments through other countries and Hong Kong.
The growth figures are also explained by the goal that Xi set five years ago: China is to double its economy by 2035. Mathematically, this requires annual economic growth of more or less five percent. Accordingly, the Chinese National Bureau of Statistics announced this Monday that the economy grew by 4.8 percent in the third quarter compared to the same quarter of the previous year. This is slightly lower than in previous quarters, but the economy is on track to reach the five percent target this year. As in previous quarters, growth was driven primarily by industrial production, which increased by 6.5 percent, and strong exports, which rose by 8.3 percent in September compared to the same month of the previous year.
For the upcoming five-year plan, experts expect largely continuity in strategic terms, partly because the president remains the same, but also because the party is expressing self-confidence. The Berlin-based think tank Merics summarizes the direction as "self-reliance and technological leadership." In the publications of the party media, "high-quality productive forces" have now replaced "high-quality development" from the 14th Five-Year Plan. But at its core, it remains the same: strong promotion of advanced industries. According to ASPI, this is intended to "total factor productivity," which describes how efficiently an economy uses its resources, needs to be increased. However, the authors note that the tech boom has so far had little impact on productivity.
One challenge facing planners is that China has now worked its way to the top in most industries and therefore can no longer simply catch up. Artificial intelligence and the related semiconductor industry are also key industries in China.
In addition, Beijing has identified new industries that do not yet exist in this form abroad. This includes the low-altitude economy, which refers to electric, vertical take-off and landing (eVTOL) air taxis.
Dozens of startups across the country are working on concepts, and one, Ehang, has already received a license for commercial flights.
These air taxis can now occasionally be seen in major Chinese cities. Other companies, according to their own statements, are on the verge of mass production. The state news agency Xinhua dedicated a major report to the industry just in time for the plenum. It is said to be one of the new growth drivers of the Chinese economy. This year alone, it is expected to contribute nearly 200 billion euros to economic output, and this figure is projected to triple by 2035.
Wübbeke names several other areas in which China is at the forefront: humanoid robots, which are now a source of entertainment for visitors at many trade fairs, hydrogen technology, as well as the new 6G mobile communications standard and nuclear fusion. "The five-year plan is developing new hype topics," says Wübbeke.” [1]
Ehang Prices For the Aircraft (EH216-S):
Inside China: Approximately RMB 2.39 million (around $330,000 - $338,000 USD), effective April 1, 2024, for urban tourism.
Global Markets (Outside China): A suggested retail price of $410,000, effective April 1, 2024, for broader Urban Air Mobility (UAM) applications.
1. So soll Chinas Wirtschaft fliegen. Frankfurter Allgemeine Zeitung; Frankfurt. 21 Oct 2025: 17. Von Gustav Theile, Shanghai
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