US-China relations: Beijing’s plan for aviation supremacy faces bumpy ride as American export controls show no signs of easing
- Since taking office, the Biden administration has not loosened buying restrictions on US aviation products imposed on China
- As a result, China’s plan to accelerate development of its aviation and aerospace industries faces enormous challenges, analysts say
China’s plan to become a powerhouse in civil aircraft manufacturing could be derailed by US export controls on aviation products, as tension between Beijing and Washington shows no sign of easing despite a new administration in Washington.
Amid fears that US global competitiveness could be compromised and critical technology could fall into the hands of the Chinese military, Washington has targeted Chinese companies, including many in the aerospace industry, by restricting them from buying US-made products.
“For the moment the Biden administration has not loosened any controls, and it may never. Much will depend on the general trajectory of US-China relations and the outcome of the ongoing policy reviews,” said Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at Centre for Strategic and International Studies (CSIS) in Washington.
I don’t think the US should see Comac, and China, as a global jetliner competitor
But the plane’s manufacturer, the state-owned Commercial Aircraft Corporation of China (Comac), was added to a blacklist of alleged Chinese military companies by the US Department of Defense in January. Under an executive order signed last year by then-President Donald Trump, American firms cannot invest in these entities.
“I don’t think the US should see Comac, and China, as a global jetliner competitor,” said Richard Aboulafia, vice-president of analysis at aviation and defence consultancy Teal Group. “But I also think there are many US government officials who want an opportunity to look tough on trade issues, and on intellectual property issues, with China.