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The Aviation Industry Corporation of China (AVIC) is a Chinese state-owned aerospace and defense conglomerate. It is ranked 151st in the Fortune Global 500 list as of 2019,[2] and has over 100 subsidiaries, 27 listed companies and 500,000 employees across the globe.[4][5]

History

Since being established on 1 April 1951 during the Korean War 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]

Split and Re-merge

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.[8]

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.[9]

Business segmentsContinental Motors, Inc. in 2010, aircraft manufacturer Cirrus in 2011, and specialized parts supplier Align Aerospace in 2015.[7]

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.[8]

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.[9]

Business segments

  • Air transport manufacturing
  • General aviation
  • Helicopters
  • Aircraft systems
  • Automobiles
  • Ships[10]

In 2015, AVIC teamed up with its partner, BHR Partners, in acquiring U.S. automotive supplier Henniges, through a joint venture structure.[11][12] Henniges called the deal "one of the largest acquisitions by a Chinese company of a U.S.-based automotive manufacturing company in history."[13]

Products

[9]

In 2015, AVIC teamed up with its partner, BHR Partners, in acquiring U.S. automotive supplier Henniges, through a joint venture structure.[11][12] Henniges called the deal "one of the largest acquisitions by a Chinese company of a U.S.-based automotive manufacturing company in history."[13]

Products

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."[14] AVIC allegedly "incorporated the stolen know-how into China's Chengdu J-20 and Shenyang FC-31 fighters."[15][16][17]

See also

Notes

  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

  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.
  3. ^ "Overview". AVIC. Archived from the original on 2016-03-05. Retrieved 2015-11-11.
  4. ^ "AVIC overview".
  5. ^ "China's NORINCO, AVIC Among Top 10 Defense Companies Worldwide; SIPRI". www.defenseworld.net.
  6. ^ "China's Boeing Wannabe Could Land in U.S. Government Crosshairs". Bloomberg News. October 12, 2020. Retrieved October 18, 2020.
  7. ^ "AVIC International buys PE-backed Align" (Press release). PE Hub Network. March 31, 2015. Retrieved June 2, 2018.
  8. ^ Nolan, Peter (2001). China and the Global Economy: National Champions, Industrial Policy, and the Big Business Revolution. New York: Palgrave. p. 30. ISBN 0333945654.
  9. ^ Lu, Haoting; Xu, Dashan (18 June 2008). "AVIC I & II closer to merger". China Daily. Archived from the original on 27 February 2020. Retrieved 24 March 2020.