全球智库信息集成服务系统

Context

• China will likely account for up to one-fifth of global demand for large commercial aircraft (LCA) and is trying to grow its currently underdeveloped domestic general aviation (GA) industry.
• China's unambiguous policy drives a whole-of-government effort to develop a globally competitive aviation industry by producing LCA and expanding China's domestic GA market.

Investments

• Chinese investments in U.S. aviation have grown in scope and quantity over the past decade but are limited to smaller GA companies with technologies not particularly relevant to commercial or military aircraft, likely because of effective U.S. export and foreign investment regulations.
• Given the GA nature of most of the investments by Chinese firms to date, there are few technology-transfer concerns. The main benefits to China's industry would be on the business-process side, such as international marketing, achieving Federal Aviation Administration safety certifications, and product support.

Implications

• U.S. competitiveness is unlikely to be threatened in the near term because production of China's LCA — the C919 — may be further delayed and operate less efficiently than current Western narrow-body aircraft on the international market. However, some experts remain concerned about the transfer of engine or avionics technology through COMAC C919 joint ventures with Western companies; others think technology transfers are unlikely given U.S. export controls.
• A more competitive civil aviation industry broadly supports Chinese military aviation (e.g., larger talent pool, scales of efficiency, greater supply chain options). However, direct military implications are minimal because advanced commercial aviation technology differs from military aviation technologies (e.g., stealth, radar, supersonic engines).

This report assesses Chinese investment in U.S. aviation from 2005 to 2016. It provides context in China's demand for aviation products and aviation industrial policies, while assessing technology transfers and impact on U.S. competitiveness. Since 2005, Chinese companies have steadily increased investment in U.S. aviation by acquiring, merging, or establishing joint ventures with more than a dozen U.S. aviation companies without directly running afoul of U.S. regulation. The combination of Chinese government policy to become globally competitive in aviation and the availability of capital drives these investments, but they are constrained by U.S. government foreign investment and export laws as well as classic business concerns about return on investment. While China has unambiguous government policies supporting the development of a globally competitive aviation industry, Chinese investment in U.S. aviation over the past decade has primarily involved lower-technology general aviation manufacturers that do not affect U.S. competitiveness. Chinese demand for large commercial aircraft may be as much as one-fifth of global demand, but the duopoly nature of global aviation also creates barriers to China's goal of developing a globally competitive commercial aircraft manufacturer, as any manufacturer of a new commercial aircraft struggles to achieve efficiencies of scale.

• Chapter One

  Introduction

• Chapter Two

  Aviation Markets

• Chapter Three

  China's Government Policy for Commercial Aviation

• Chapter Four

  Chinese Investments in U.S. Aviation

• Chapter Five

  Assessing the Effect of Chinese Investments in U.S. Aviation

• Chapter Six

  Conclusions