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The Effectiveness of China's Industrial Policies in Commercial Aviation Manufacturing

by Keith Crane David Yang Jill E. Luoto Scott Warren Harold Samuel K. Berkowitz Xiao Wang

Since economic reforms began in 1978, China has enjoyed rapid growth in exports, which have contributed to the country's impressive economic growth. Improvements in the quality of China's workforce, manufacturing technologies, and materials have enabled the country to enter new, more technologically sophisticated industries. In several such industries, which the Chinese government has frequently denoted as strategic, the Chinese government has employed industrial policies, formal and informal, to foster the development of national champions. As part of this strategy, the Chinese government has attempted to induce the transfer of technologies from foreign manufacturers to Chinese companies. To the extent that these policies have been successful, they have accelerated shifts in production and employment from industries located in other countries to China. This report explores the emerging commercial aviation manufacturing industry in China to examine the effectiveness of the policies and mechanisms the Chinese government has used to create "national champions;" evaluate the effectiveness of the steps taken by foreign manufacturers to prevent transfers of key technologies to potential future Chinese competitors when setting up manufacturing facilities in China; provide policy options that allow foreign governments to effectively respond to Chinese industrial policies; and alert Chinese policymakers to the downsides of China's current industrial policies.

Ready for Takeoff: China's Advancing Aerospace Industry

by Roger Cliff David Yang Chad J. Ohlandt

An assessment of China's aerospace manufacturing capabilities and how China's participation in commercial markets and supply chains contributes to their improvement. It examines China's aviation and space manufacturing capabilities, government efforts to encourage foreign participation, transfers of foreign technology to China, the extent to which U.S. and foreign aerospace firms depend on supplies from China, and their implications for U.S. security interests.

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