China will ban the sale of drones in Beijing and require permits to fly them under new rules that take effect on Friday.
Drones and key components will be prohibited from being sold, rented or brought into the Chinese capital. Drone owners will also be required to register their devices with the police.
China has gradually tightened regulations on drones in recent years, with authorities citing public safety concerns.
Drones and flying taxis are part of the so-called low-altitude economy, a strategic priority for China that is expected to generate more than two trillion yuan ($290bn; £217bn) by 2035.
In some Chinese cities, drones are a common sight, used for food delivery, agriculture and cleaning buildings.
Chinese companies may dominate the global drone market, but the country is becoming one of the most difficult places to fly one.
Drones must be registered before they can be brought in and out of Beijing. And if users send their drones out of the city for repair, they need to pick up the device in person rather than have it delivered.
All outdoor drone flights in Beijing will also require prior approval, and drone users must complete an online training session and pass a test on drone regulations.
There are exceptions: Drones may still be bought and stored for purposes like counter-terrorism and disaster relief, if approved by authorities.
But in recent years China has repeatedly tightened rules governing the use of drones in the country.
The drone restrictions in Beijing were approved in March. At that time, city authorities said management of drones must be strengthened to respond to "challenges" in low-altitude airspace safety.
Xiong Jinghua, a senior official in the Beijing Municipal People's Congress, said the goal was to "strike the best balance" between safety and ensuring technological and economic progress.
Last year, Beijing's entire airspace was designated a no-drone zone, with approval needed from air traffic authorities before people can fly their drones.
The recent sweeping regulations are likely to shake up the massive drone market in China, where according to government data there are more than three million registered drones.
China is home to major drone companies including DJI, the world's largest drone maker.
With the looming new restrictions, DJI shops in Beijing are reportedly taking drones and related products off their shelves.
Additional reporting by BBC Chinese
