The Aviation Industry Corporation of China (AVIC) is a Chinese state-owned, publicly-traded aerospace and defense conglomerate headquartered in Beijing. AVIC is overseen by the State-owned Assets Supervision and Administration Commission of the State Council. It is ranked 140th in the Fortune Global 500 list as of 2021, and has over 100 subsidiaries, 27 listed companies and 500,000 employees across the globe.[2] AVIC is also the sixth largest defense contractor globally as of 2022 and second largest Chinese defense contractor with total revenue of $79 billion (from both defense and non-defense services).[3]
History
Since being established on 1 April 1951 as the Aviation Industry Administration Commission,[4] the aviation industry of the People's Republic of China has been through 12 systemic reforms.
In 1994, Avic was among the large industrial state-owned enterprises of China which were selected for a pilot program of restructuring as state holding companies, thereby enabling partial public listings of its subsidiaries' assets.[5]
AVIC purchased American aircraft engine manufacturer Continental Motors, Inc. in 2010, aircraft manufacturer Cirrus in 2011, and specialized parts supplier Align Aerospace in 2015.[6] In 2015, AVIC and BHR Partners acquired U.S. automotive supplier Henniges, through a joint venture structure.[7]
In 2016, Aero Engine Corporation of China was formed, capitalized with US$7.5 billion by Aviation Industry Corporation of China (AVIC) and Commercial Aircraft Corporation of China, Ltd. (COMAC) in order to consolidate aero-engine and related technologies.
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.[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]
Espionage allegations
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."[10] AVIC allegedly "incorporated the stolen know-how into China's Chengdu J-20 and Shenyang FC-31 fighters."[11][12][13]
U.S. sanctions
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.[14][15][16][17]
Russian invasion of Ukraine
In February 2023, the Center for Advanced Defense Studies reported that customs data showed that AVIC shipped parts for Sukhoi Su-35 fighter jets to a subsidiary of sanctioned Russian defense company Rostec following the 2022 Russian invasion of Ukraine.[18]
Myanmar civil war
AVIC has provided weapons and aircraft to the Myanmar junta.[19][20]
Products
Airliner
Civilian airship
- AVIC AS700 Airship
Fighter aircraft
(*) indicates under development
- J-10
- Chengdu J-10S (Trainer)
- Chengdu J-10D* (EW)
- J-11
- Shenyang J-11B/BG/BH
- J-15
- J-16
- Shenyang J-16D (EW)
- JF-17
- J-20
- Chengdu J-20A
- Chengdu J-20S (Tandem seat)*
- J-35
- AVIC Baidi B-Type[22]
Fighter bomber aircraft
- JH-7
Trainer aircraft
- JL-8
- JL-9
- L-15
Transport aircraft
- Y-7
- Y-8
- Y-9
- Y-11
- Y-12
- Y-14
- Y-20
- Xi'an YY-20 (Aerial Refueling)
- MA60
- MA600
- MA700
Bomber aircraft
- H-6
- H-20*
- J-XX*
AEW&C aircraft
- KJ-200
- KJ-500
- KJ-600*
- KJ-2000
Helicopter
- AC313
- AC332
- Z-8
- Z-9
- Z-9W/G
- Z-10
- Z-11
- Z-18
- Z-19
- Z-20
- AVIC Advanced Heavy Lifter*
- Z-15 / AC352 / EC175
- HC-120/EC120
Unmanned aerial vehicle
- Pterodactyl I
- Soar Dragon
- AVIC Cloud Shadow
Electronic-warfare aircraft
- J-16D
- Y-8DZ
- Y-9G (GX-11)
Maritime-patrol aircraft
- Harbin SH-5
- Harbin PS-5
- AVIC AG600
- Y-8FQ
See also
- List of aircraft produced by China
- Commercial Aircraft Corporation of China (COMAC)
- Aero Engine Corporation of China (AECC)
External links
References
- Aviation Industry Corporation of China. Leadership - AVIC retrieved 2018-05-31^
- China's NORINCO, AVIC Among Top 10 Defense Companies Worldwide; SIPRI www.defenseworld.net, retrieved 2018-06-11^
- 15 Largest Defense Contractors in the World in 2022 Insider Monkey/Yahoo Finance, 15 June 2023, retrieved 2023-12-17^
- China's Boeing Wannabe Could Land in U.S. Government Crosshairs Bloomberg News, October 12, 2020, retrieved October 18, 2020^
- Wendy Leutert. China's State-Owned Enterprises: Leadership, Reform, and Internationalization Cambridge University Press, 2024^
- AVIC International buys PE-backed Align PE Hub Network, March 31, 2015, retrieved June 2, 2018^
- Henniges is acquired by China's AVIC Auto Sealing Technology, 2015-11-01^
- Peter Nolan. China and the Global Economy: National Champions, Industrial Policy, and the Big Business Revolution Palgrave, 2001^
- Haoting Lu, Dashan Xu. AVIC I & II closer to merger 18 June 2008, retrieved 24 March 2020^
- Gorman S, Cole A, Dreazen Y. Computer Spies Breach Fighter-Jet Project Article The Wall Street Journal, April 21, 2009, retrieved September 25, 2019^
- Stolen F-35 secrets now showing up in China's stealth fighter Fox News, 20 December 2015, retrieved 25 September 2019^
- New Snowden Documents Reveal Chinese Behind F-35 Hack The Diplomat, 27 January 2015, retrieved 25 September 2019^
- America says China's fifth-generation jet fighter J-31 stolen from its F-35 The Economic Times, 13 November 2015, retrieved 25 September 2019^
- Factbox: List of 31 Chinese companies designated by the U.S. as military-backed Reuters, 2020-11-13, retrieved 2020-11-18^
- Shawna Chen. Trump bans Americans from investing in 31 companies with links to Chinese military Axios, November 12, 2020, retrieved November 12, 2020^
- Humeyra Pamuk, Alexandra Alper, Idrees Ali. Trump bans U.S. investments in firms linked to Chinese military Reuters, 2020-11-12, retrieved 2020-11-12^
- Ana Swanson. Trump Bars Investment in Chinese Firms With Military Ties The New York Times, 2020-11-12, retrieved 2020-11-13^
- China Aids Russia's War in Ukraine, Trade Data Shows The Wall Street Journal, 4 February 2023, retrieved 2023-02-04^
- Airbus investing in Chinese firm that supplies Myanmar military: report Voice of America, 2024-09-19, retrieved 2024-11-14^
- Airbus Asked to Sever Ties with Chinese Supplier Aiding Myanmar EFE Noticias, 2024-09-16, retrieved 2024-11-14^
- Domestic-Made Regional Jet ARJ21 to Be Delivered in 2014 2014-03-11, retrieved 2022-12-22^
- China's 'NGAD' White Emperor 6th Generation Fighter is a Problem for the Air Force 14 November 2024^
- Overview AVIC, retrieved 2015-11-11^
- 151: Aviation Industry Corporation of China Fortune Global 500, retrieved 2020-06-17^