A Mandarin at the Gate: The Political Economy of China’s Commercial Aircraft Industry

Abstract

Abstract: Almost anyone, accidental tourist or frequent flyer, who boarded a Chinese commercial flight in the 1970s or early 1980s, had a story to tell. Passengers used to joke that the state-run Civil Aviation Administration of China’s acronym, CAAC, stood for “Chinese Airlines Always Canceled,” or even worse “Chinese Aircraft Always Crash.” Even so, air travel is booming in China. This study focuses on China’s emerging civil aircraft manufacturing industry and the political questions it raises. Why is China concentrating on civil aircraft manufacturing? How did the aircraft industry come about in China? What are China’s policy goals in this industry? Given tough competition in world and domestic markets, how will China attain its goals? What strategies have Western aircraft companies adopted? In the case of China’s AE-100 project, how have international political and economic factors affected industrial policies? Finally, since Taiwan is developing its own aircraft industry, is it possible there will be cooperation across the turbulent strait, despite the political gulf?