Many major deals have been signed in China recently in industry and manufacturing. However, some of these ventures have failed to produce tangible results and some, such as the Chinese “rescue” of , have never even left the ground.
The Aviation Industry Corporation of China (AVIC), a state-owned giant, sees themselves as the only viable partner for major projects.
One senior AVIC official at NBAA remarked to Aviation Week, “Only AVIC has the capability to handle large scale production in China. Resources are few and the resources that exist are all controlled by AVIC. If you want to build more than five aircraft in China you need to be working with AVIC.”
Discussing the failed attempt by China’s Superior Aviation to take over Hawker Beechcraft, Aviation Week was told, “I was very surprised when I heard about this deal because I had never heard of the company involved – and I have been in the aviation business in China for more than 30 years. Who were they? Where did they come from?”
“This was a deal that had to be done with AVIC or not at all.” Aviation Week also understands that financial backing for the deal relied heavily on the Beijing municipal government – which balked at the proposed purchase price of $1.79 billion.