Size of Aviation Industry Corporation of China (Avic) is gigantic !
With more than 100 subsidiaries and 23 listed companies, AVIC has over 450,000 employees – more than America’s Boeing and Europe’s Airbus combined.
Avic is “of high strategic importance to China’s national defence and acts as the backbone of the country’s military and civilian aviation manufacturing industry”, according to Fitch Ratings.
What is it's scope in aviation business ?
The firm is into products for military use as well as for the civil aviation market. It's subsidiaries manufacture some of China’s leading fighter aircraft such as the J-10, J-11, and J-20.
It is a major supplier of aero components for China's small regional jet ARJ-21 and C919, a narrow body medium-haul aircraft. It also exports products abroad, including its regional turboprop MA60 series, Y12s and the AC series helicopters.
What are the aspirations ?
The Aviation Industry Corporation of China (Avic) is the face of china in aviation, it is infact responsible for China’s plan to become technologically self-reliant and become a key supplier for the homegrown commercial aircrafts, that Beijing wants to export to the world.
Dominance !
Yes, Avic is at the forefront, it plays a dominant role in research and development, operations, manufacturing and financing in China’s aviation industry.
It has a monopoly on military aircraft manufacturing and maintenance, and is the third-largest shareholder of Commercial Aircraft Corporation of China (Comac), the manufacturer of
C919 aircrafts, which is designed to compete with the Boeing 737 and Airbus A320.
Though Avic only holds around 12.35% share in Comac, it has an “outsize influence on Comac’s operations. Much of Comac’s original leadership, employees, facilities, and technology came from Avic.
International Presence :
Avic and its subsidiaries have been buying overseas aviation-related assets and technology, and the company has a number of joint ventures with foreign firms, including with GE Aviation in avionics and Honeywell Aerospace in flight control systems.
The sanctions :
Avic’s overseas ventures started raising concerns for washinton DC in recent years, as bilateral relations between the USA and China took a downward development.
Beijing’s strategy of “military-civil fusion” – the policy that aims to use civil technology to strengthen its military capacity and development was seen a challenge.
In December 2020, seven of Avic's subsidiaries entered on the 'US Commerce Department’s list of Chinese companies' with alleged military ties.
They were subjected to a licensing requirement for certain sensitive items that are described in US export control regulations.
