Characterised by its speed, precision and low noise, the system is designed to destroy unmanned, small-scale drones flying within an altitude of 500 metres and at a speed below 50m/s, state-run Xinhua news agency reported.
Also at the same time it is expected to play a key role in ensuring security during major events in urban areas and address unlicensed mapping activities, agency reported.
The weapon is able to shoot down small aircraft within a two-kilometre radius and can do so in five seconds after locating its target, said a statement released by the China Academy of Engineering Physics, one of the system's co-developers.
According to Xi, small-scale, unmanned drones were relatively cheap and easy to use, making them a likely choice for terrorists.
The new laser system, which will either be installed or transported in vehicles, will keep a tight vigil on security for domestic political meetings, international conferences and sports events, looking to prevent public protests as well as any threats to the participants.
The academy further is developing similar laser security systems with greater power and range, they said.
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