China's eVTOL Surge: Will the East Beat the West to Market?

Whilst Western manufacturers navigate FAA and EASA certification pathways, China is moving fast to establish its own framework. Who will win  the race to achieve commercial operations and what implications that holds for global market dynamics?

China: The Regulatory Wild Card

The Civil Aviation Administration of China (CAAC) has released draft airworthiness standards for both restricted-category unmanned aircraft systems and powered-lift aircraft, establishing unified certification standards for large unmanned aircraft and powered-lift vehicles capable of carrying pilots or passengers. This represents a significant step toward standardising airworthiness certification for next-generation aircraft to support commercial operations in low-altitude airspace.

The development signals China’s intent to create a domestic regulatory pathway that could enable earlier market entry than Western certification processes. Whilst FAA and EASA approval pathways involve lengthy validation testing and conservative timelines, China’s framework appears oriented toward accelerating initial operations under nationally defined safety standards.

Commercial Momentum Builds

The commercial momentum is tangible. Chinese eVTOL developer Aerofugia says it has secured purchase orders for 300 units of its AE200 model, a five- to six-seat aircraft with 200-kilometre range designed for commercial passenger transport, air tourism and emergency rescue. Strategic cooperation agreements with AVIC International Leasing and Suyin Financial Leasing aim to address scaling and financing challenges during the initial commercialisation phase.

The 300-unit order represents a significant commitment, particularly when compared with Western order books that often consist of letters of intent rather than firm purchase agreements. The involvement of state-backed leasing companies suggests a coordinated industrial policy approach to eVTOL commercialisation.

EHang achieved the first public flight of its VT-35, a next-generation long-range autonomous passenger eVTOL designed for intercity routes, expanding beyond short-range urban operations. EHang has already conducted commercial passenger flights in limited scenarios, giving it operational experience that Western manufacturers have yet to accumulate.

Strategic Implications

Will China's parallel certification track and aggressive commercialisation timeline force Western regulators to accelerate their own processes, or will divergent standards fragment the global market? 

China's approach could provide valuable operational data that informs Western certification processes. If Chinese eVTOLs operate safely at scale, it could validate design approaches and operational concepts, potentially accelerating FAA and EASA approvals.

The competitive dynamic extends beyond regulatory timelines. China's manufacturing capacity, supply chain integration, and domestic market scale provide advantages that Western startups may struggle to match. However, can the Western manufacturers leverage superior certification standards and international market access to offset China's industrial advantages?

Western Response

Beyond China, the regulatory landscape is taking shape through international collaboration. Saudi Arabia's General Authority of Civil Aviation has signed an agreement with Archer Aviation to establish a regulatory pathway for eVTOL operations across the Kingdom. GACA plans to model this framework on the FAA's eVTOL Implementation Pilot Program, targeting early operations in Riyadh, Jeddah and Red Sea Global developments as part of Vision 2030. With $100 billion in aviation investment planned, Saudi Arabia is positioning itself as a first-mover market.

In the United States, a Presidential Executive Order directing the Department of Transportation and the FAA to support the introduction of mature eVTOL aircraft into select markets signals political backing, even as the definition of “mature” and the limits of pre‑certification operations remain unresolved.

The strategic question for Western manufacturers is whether they can secure early operational approvals in markets like Saudi Arabia to gain commercial experience whilst FAA certification progresses, or whether China will establish a lead that proves difficult to overcome.

Next in this series: Infrastructure challenges. From vertiports to charging systems, examining the $100 billion question facing urban air mobility.