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countries’ was its ability to assem-
ble all the parts needed for drone
deliveries, including compliance
with government regulations,
an effective infrastructure, and
the world’s biggest e-commerce
market. Four years earlier, the
Civil Aviation Administration of
China (CAAC) gave the go-ahead
for JD and SF Holding Co., the coun-
try’s biggest express-delivery company,
to start sending packages by drone in certain
rural areas. The idea was for the two companies to build a net-
work that would include not only small drones for final delivery but
an entire system, including large, autonomous fixed-wing planes
that would take off from small airports or landing strips to move
bulk shipments between warehouses.
China’s main incentive to quickly develop a wide-scale drone
delivery program was the sheer enormity of its market—millions
of consumers living in remote areas that are difficult, if not impos-
sible, to reach by truck. For the Chinese government, leading the
way in drone delivery offered a way to help alleviate poverty in
rural areas and narrow the wealth gap with urban centers. It also
made China a model for other governments around the world
looking to draft regulations for the coming swarms of commer-
cial drones. Promoting drone delivery was “a key opportunity for
CAAC to gain a greater say in international aviation industry and
overtake peers,”
8
the civil aviation administration said.
While e-commerce and delivery companies in other countries
go through extensive drone delivery testing programs in hopes of
meeting government standards, the Chinese government encour-
aged JD to take the lead in developing drones with the strength,
range, and reliability to deliver goods on a large scale and solve
the expensive last-mile problem. With the government’s backing
and few regulations to overcome, JD aggressively developed the
infrastructure
The fundamental facili-
ties and systems serv-
ing a country, city, or
area, such as transpor-
tation and communica-
tion systems, power
plants, and schools
