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Aviation Industry Corporation of China

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Not to be confused with Airspace Industry Corporation of China.

The Aviation Industry Corporation of China (AVIC) is a Chinese state-owned publicly-traded aerospace and defense conglomerate headquartered in Beijing. AVIC is overseen by the State-owned Assets Supervision and Administration Commission of the State Council. It is ranked 140th in the Fortune Global 500 list as of 2021,[2] and has over 100 subsidiaries, 27 listed companies and 500,000 employees across the globe.[4] AVIC is also the sixth largest defense contractor globally as of 2022 and second largest Chinese defense contractor with total revenue of $79 billion (from both defense and non-defense services).[5]

Aviation Industry Corporation of China
Native name
中国航空工业集团公司
Company typePublic
Industry
PredecessorChina Aviation Industry Corporation I
China Aviation Industry Corporation II
FoundedApril 1, 1951; 73 years ago (1951-04-01)
Headquarters
Chaoyang District, Beijing
,
China
Area served
Worldwide
Key people
Tan Ruisong (Chairman and CEO)[1]
ProductsCivil and military aircraft
Unmanned aerial vehicles
Trucks
Automobile parts
Electronics
Robots
Ships
RevenueIncrease US$66.96 billion (2021)[2]
Increase CN¥370.6 billion (2016)
Increase US$915.7 million (2021)[2]
Total assetsIncrease US$161.2 billion (2021)[2]
Number of employees
407,344 (2021)[2][3]
Divisions
Subsidiaries
Websiteen.avic.com Edit this at Wikidata
Aviation Industry Corporation of China
Simplified Chinese中国航空工业集团公司
Traditional Chinese中國航空工業集團公司
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngguó Hángkōng Gōngyè Jítuán Gōngsī
Abbreviation
Simplified Chinese航空工业
Traditional Chinese航空工業
Transcriptions
Standard Mandarin
Hanyu PinyinHángkōng Gōngyè
Second alternative Chinese name
Simplified Chinese中航工业
Traditional Chinese中航工業
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngháng Gōngyè

History

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Since being established on 1 April 1951 as the Aviation Industry Administration Commission,[6] the aviation industry of the People's Republic of China has been through 12 systemic reforms.

AVIC purchased American aircraft engine manufacturer Continental Motors, Inc. in 2010, aircraft manufacturer Cirrus in 2011, and specialized parts supplier Align Aerospace in 2015.[7] In 2015, AVIC and BHR Partners acquired U.S. automotive supplier Henniges, through a joint venture structure.[8]

In 2016, Aero Engine Corporation of China was formed, capitalized with US$7.5 billion by Aviation Industry Corporation of China (AVIC) and Commercial Aircraft Corporation of China, Ltd. (COMAC) in order to consolidate aero-engine and related technologies.

Period Organization name
Apr 1951 – Aug 1952 Aviation Industry Bureau, Ministry of Heavy Industry
Aug 1952 – Feb 1958 4th Bureau, No.2 Mechanical Industry Department
Feb 1958 – Sept 1960 4th Bureau, No.1 Mechanical Industry Department
Sept 1960 – Sept 1963 4th Bureau, No.3 Mechanical Industry Department
Sept 1963 – Apr 1982 No.3 Mechanical Industry Department
Apr 1982 – Apr 1988 Ministry of Aviation Industry
Apr 1988 – Jun 1993 Ministry of Aviation and Aerospace Industry
Jun 1993 – Jun 1999 China Aviation Industry Corporation (中国航空工业总公司)
Jul 1999 – May 2008 China Aviation Industry Corporation I (AVIC I), China Aviation Industry Corporation II (AVIC II)
May 2008 – Nov 2008 China Aviation Industry Corporation I, China Aviation Industry Corporation II,
Commercial Aircraft Corporation of China (COMAC)
Nov 2008 – Present Aviation Industry Corporation of China, Commercial Aircraft Corporation of China[Note 1]

Split and re-merger

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China Aviation Industry Corporation was split into two separate entities, China Aviation Industry Corporation I and China Aviation Industry Corporation II in 1999. Both retained civilian and military aircraft production capabilities, along with a number of unrelated business ventures. The split was intended to foster competitiveness in the Chinese aerospace industry.[9]

In 2008, AVIC I and AVIC II officially merged back together. The previous separation resulted in split resources and led to redundant projects. The goal of the merger was to eliminate this redundancy and spin off pursuits unrelated to aerospace, such as motorcycle and automobile parts manufacturing.[10]

Espionage allegations

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Further information: Chinese espionage in the United States

In April 2009, The Wall Street Journal reported that computer spies, allegedly Chinese, "had penetrated the database of the Joint Strike Fighter program and acquired terabytes of secret information about the fighter, possibly compromising its future effectiveness."[11] AVIC allegedly "incorporated the stolen know-how into China's Chengdu J-20 and Shenyang FC-31 fighters."[12][13][14]


U.S. sanctions

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Further information: United States sanctions against China and Military-civil fusion

In November 2020, Donald Trump issued an executive order prohibiting any American company or individual from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included AVIC.[15][16][17][18]

Russian invasion of Ukraine

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Further information: China and the Russian invasion of Ukraine

In February 2023, the Center for Advanced Defense Studies reported that customs data showed that AVIC shipped parts for Sukhoi Su-35 fighter jets to a subsidiary of sanctioned Russian defense company Rostec following the 2022 Russian invasion of Ukraine.[19]

Products

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Airliner

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List of airliners of AVIC
Aircraft Type Description Developer Seats Number Built Maiden Flight Introduction Production Ceased Retired
Xian MA60 Turboprop Airliner Turboprop Regional airliner Xi'an Aircraft Industrial Corporation 62 110+(330 on order)[20] 25 February 2000
Xian MA600 Turboprop Airliner Turboprop Regional airliner Xi'an Aircraft Industrial Corporation 60 18+(310 on order) 10 October 2008
Xian MA700 Turboprop Airliner Turboprop Regional airliner Xi'an Aircraft Industrial Corporation 68-86 - planned November 2019
CBJ800 Jet airliner Business jet Chengdu Aircraft Industry Group 9-12 - planned 2016

Civilian airship

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Fighter aircraft

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Chengdu J-20
 
Chengdu J-10
 
Chengdu/PAC JF-17

(*) indicates under development

Fighter bomber aircraft

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Trainer aircraft

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Transport aircraft

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Bomber aircraft

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AEW&C aircraft

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Helicopter

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Unmanned aerial vehicle

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Electronic-warfare aircraft

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Maritime-patrol aircraft

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Controversies

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Houses on fire due to air attack on Myanmar village

AVIC provides weapons to the Myanmar junta,[23][24] known for bombing ethnic villages[25] and airstrikes such as the Hpakant massacre.[26]

See also

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Notes

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  1. ^ AVIC is one of the shareholders in Comac (26.32% in 2009). However, AVIC and COMAC operate independently, and both companies are supervised by the State-owned Assets Supervision and Administration Commission of the State Council.

References

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  1. ^ Aviation Industry Corporation of China. "Leadership - AVIC". Archived from the original on 2019-11-09. Retrieved 2018-05-31.
  2. ^ a b c d e "151: Aviation Industry Corporation of China". Fortune Global 500. Archived from the original on 2020-02-15. Retrieved 2020-06-17.
  3. ^ "Overview". AVIC. Archived from the original on 2016-03-05. Retrieved 2015-11-11.
  4. ^ "China's NORINCO, AVIC Among Top 10 Defense Companies Worldwide; SIPRI". www.defenseworld.net. Archived from the original on 2018-06-12. Retrieved 2018-06-11.
  5. ^ "15 Largest Defense Contractors in the World in 2022". Insider Monkey/Yahoo Finance. 15 June 2023. Archived from the original on 2024-04-15. Retrieved 2023-12-17.
  6. ^ "China's Boeing Wannabe Could Land in U.S. Government Crosshairs". Bloomberg News. October 12, 2020. Archived from the original on November 18, 2023. Retrieved October 18, 2020.
  7. ^ "AVIC International buys PE-backed Align" (Press release). PE Hub Network. March 31, 2015. Archived from the original on March 16, 2016. Retrieved June 2, 2018.
  8. ^ "Henniges is acquired by China's AVIC Auto". Sealing Technology. 2015 (11): 4–5. 2015-11-01. doi:10.1016/S1350-4789(15)30341-X. ISSN 1350-4789.
  9. ^ Nolan, Peter (2001). China and the Global Economy: National Champions, Industrial Policy, and the Big Business Revolution. New York: Palgrave. p. 30. ISBN 0333945654.
  10. ^ Lu, Haoting; Xu, Dashan (18 June 2008). "AVIC I & II closer to merger". China Daily. Archived from the original on 6 October 2022. Retrieved 24 March 2020.
  11. ^ Gorman S, Cole A, Dreazen Y (April 21, 2009). "Computer Spies Breach Fighter-Jet Project Article". The Wall Street Journal. Archived from the original on September 17, 2020. Retrieved September 25, 2019.{{cite news}}: CS1 maint: multiple names: authors list (link)
  12. ^ "Stolen F-35 secrets now showing up in China's stealth fighter". Fox News. 20 December 2015. Archived from the original on 25 September 2019. Retrieved 25 September 2019.
  13. ^ "New Snowden Documents Reveal Chinese Behind F-35 Hack". The Diplomat. 27 January 2015. Archived from the original on 25 September 2019. Retrieved 25 September 2019.
  14. ^ "America says China's fifth-generation jet fighter J-31 stolen from its F-35". The Economic Times. 13 November 2015. Archived from the original on 26 September 2019. Retrieved 25 September 2019.
  15. ^ "Factbox: List of 31 Chinese companies designated by the U.S. as military-backed". Reuters. 2020-11-13. Archived from the original on November 13, 2020. Retrieved 2020-11-18.
  16. ^ Chen, Shawna (November 12, 2020). "Trump bans Americans from investing in 31 companies with links to Chinese military". Axios. Archived from the original on October 28, 2021. Retrieved November 12, 2020.
  17. ^ Pamuk, Humeyra; Alper, Alexandra; Ali, Idrees (2020-11-12). "Trump bans U.S. investments in firms linked to Chinese military". Reuters. Archived from the original on 2021-10-28. Retrieved 2020-11-12.
  18. ^ Swanson, Ana (2020-11-12). "Trump Bars Investment in Chinese Firms With Military Ties". The New York Times. ISSN 0362-4331. Archived from the original on 2020-11-13. Retrieved 2020-11-13.
  19. ^ "China Aids Russia's War in Ukraine, Trade Data Shows". The Wall Street Journal. 4 February 2023. Archived from the original on 2023-03-12. Retrieved 2023-02-04.
  20. ^ "Domestic-Made Regional Jet ARJ21 to Be Delivered in 2014". 2014-03-11. Archived from the original on 2014-03-11. Retrieved 2022-12-22.
  21. ^ https://www.eurasiantimes.com/chinas-6th-gen-fighter-beijing-unveils/
  22. ^ https://nationalinterest.org/blog/buzz/chinas-ngad-white-emperor-6th-generation-fighter-problem-air-force-213716
  23. ^ "Airbus investing in Chinese firm that supplies Myanmar military: report". Voice of America. 2024-09-19. Retrieved 2024-11-14.
  24. ^ "Airbus Asked to Sever Ties with Chinese Supplier Aiding Myanmar". EFE Noticias. 2024-09-16. Retrieved 2024-11-14.
  25. ^ "Myanmar's junta can't win the civil war it started". Retrieved 2024-11-14.
  26. ^ "Airstrike Kills at Least 80 During Outdoor Concert in Myanmar". Retrieved 2024-11-14.
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