Cleared for takeoff
Not content with having the mainland's Detroit in its own auto industry, Shanghai has recently set its sights higher - seeking to recreate Seattle or Toulouse, with its own aircraft manufacturing base.
The city even has its own cheerleader for the industry: local entrepreneur Li Linhai became the country's first private aircraft owner in 2003, when he bought a four-seat R44 helicopter, manufactured by the American Robinson Helicopter company. Mr Li has reportedly spent 2 million yuan to deign and build another helicopter.
Shanghai government officials have similar dreams. Last week, the local government quietly named aircraft manufacturing as the sixth most important industry in need of attracting foreign investment. 'Shanghai wants to make civil aviation a new industry for future development,' said Chen Yin, vice-chairman of the Shanghai Development and Reform Commission.
Mr Chen said the city has its eye on aircraft manufacturing - along with other aviation-related industries such as maintenance and refitting - and wants to become a regional aviation hub.
A new project, to produce a regional jet, is scheduled to begin by 2008. China Aviation Industry Corp I has tapped Shanghai Aircraft Manufacturing to play a leading role in building the 80-100-seat regional jet.
Maoist ideals of self-sufficiency, national pride and a desire to reduce dependency on foreign imports are among the factors driving the project, although government officials stress the mainland's rapidly growing air passenger market as the main reason.
Shanghai vice-mayor Feng Guoqin said: 'The whole aviation sector is developing very rapidly... The goal of imports is to digest and absorb [technology] - to develop ourselves.'
In 1998, the mainland scrapped plans to build 20 MD-90 aircraft in a deal with McDonnell Douglas, with participation by Shanghai. Now the time for such a deal may be ripe. Last month, Boeing announced it would substantially increase output of 737 components at Shanghai Aviation Industrial Corp. It also publicised US$600 million in agreements with other mainland suppliers for the production of other commercial airplane parts.
Shanghai is already the site of a joint venture between Sikorsky Aircraft of the United States and Shanghai Little Eagle Science and Technology, to make light helicopters. Shanghai mayor Han Zheng said last month that the city would eventually have the capacity to build 2 million cars annually, through joint ventures with General Motors and Volkswagen.
Aircraft may be close behind.
