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China's Baotou Leads Development of Full-Stack Defense Innovation Cities for Low-Altitude Economy

DEFENSE

Baotou, a key city in China's rare-earths sector, is establishing next-generation production chains for drones, eVTOL aircraft, and humanoid robots. The city is developing an integrated industrial ecosystem that combines rare-earth processing with component manufacturing.

Local governments across China are emulating this model, co-locating processing zones with makers of drones and robotics. In Sichuan, Mianyang is investing in permanent magnet production to enhance defense R&D.

China's low-altitude economy, projected to be worth 2.5 trillion RMB ($500 billion) in a decade, focuses on activities below 1,000 meters. Cities like Ganzhou and parks in Fujian are creating ecosystems for R&D and manufacturing.

Some parks are incorporating defense capabilities, forming militia units for UAV operations. China's military and commercial sectors benefit from this full-stack development model, which enhances resilience against disruptions and strengthens supply chains for next-generation technologies.

China's Baotou Leads Development of Full-Stack Defense Innovation Cities for Low-Altitude Economy
Jan 21, 2026, 6:25 AM

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