Chinese drone that takes off and land on water.

Shanghai UVS Intelligence System is set to become the first company in the world to bring to market a commercial drone that's able to take off and land on water. known as the U650, could be used by businesses and the military.

The drones should be rolling off factory production lines in Shanghai by the end of the year, and can stay in the air for up to 15 hours, flying as far as 2,000 kilometers (1,240 miles), according to the company.

Delivery firms as one set of potential customers and Like Amazon in the U.S., Chinese e-commerce companies like JD.com (JD) are aggressively pursuing the use of drones in their supply chains.

The U650 can carry up to 550 pounds of cargo, but it will face limits on where exactly it can go. Because of its size, the new drone won't be able to fly in the same airspace as manned aircraft, which will "restrict a lot of potential use,"

The drones would be able to carry out surveillance and deliver supplies, which "comes in handy because you don't have a lot of runway in those environments," Wong said.

PICTURE BY: Shanghai UVS Intelligence System