The Aviation Industry Corporation of China (AVIC) is a Chinese state-owned aerospace and defense conglomerate headquartered in Beijing. 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][5]
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][9]
Period
Organization name
Apr 1951 – Aug 1952
Aviation Industry Bureau, Ministry of Heavy Industry
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
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.[10]
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.[11]
Espionage allegations
See also: 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."[12] AVIC allegedly "incorporated the stolen know-how into China's Chengdu J-20 and Shenyang FC-31 fighters."[13][14][15]
U.S. sanctions
Further information: United States sanctions against China
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.[16][17][18][19]
Products
This section does not cite any sources. (January 2022)
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
Aviation Industry Corporation of China. "Leadership - AVIC". Archived from the original on 2019-11-09. Retrieved 2018-05-31.
Nolan, Peter (2001). China and the Global Economy: National Champions, Industrial Policy, and the Big Business Revolution. New York: Palgrave. p.30. ISBN0333945654.
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