China’s two main aircraft-making groups will merge back together as a step toward simplifying and rationalizing the industry, especially in the military subsector. The re-merger of Avic 1 and Avic 2 is expected to happen this year, nine years after they were separated. It may be a prelude to pulling the industry apart again to create a range of national champions focused on different parts of the aircraft-making business. These reforms, however they play out, are laying the ...

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