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AVIC lobbies hard for jet engine funding
Published on: 2012-10-31
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altChina has designed nuclear missiles and blasted astronauts into space, but one vital technology remains out of reach. Despite decades of research and development, China has so far failed to build a high performance jet engine.
 
This may be about to change. China's aviation sector is striving for a breakthrough that would end its dependence on Russian and Western power plants for military and commercial aircraft.
 
China is evaluating a 100 billion yuan (US$16.02 billion) plan to galvanize a disjointed and under-funded engine research effort, aviation industry officials say. State-owned Aviation Industry Corporation of China, China's dominant military and commercial aviation contractor, has been lobbying hard for the extra money, officials familiar with the details say.
 
AVIC has already set aside about 10 billion yuan of its own funds for jet engine development over three years.
 
The engine financing plan is under high-level discussion, said Zhao Yuxing, an official at the securities office of Shanghai-listed Xi'an Aero-Engine Plc, a key engine-making unit of AVIC. "What we know is our company has been included in the strategic program, which is designed to greatly develop and support the engine industry," he said by phone from his company's headquarters in Xi'an, capital of Shaanxi Province.
 
China's military industry as a whole has suffered from bans on the sale of military equipment from the US and Europe. Moreover, foreign engine-makers have been loath to transfer technology.
 
Some Chinese aviation industry specialists forecast that Beijing will eventually spend up to 300 billion yuan on jet engine development over 20 years.
 
"China's aircraft engines have obviously been under-invested," said Wang Tianyi, a defense sector analyst with Shanghai's Orient Securities.
 
AVIC is trying to design power plants for passenger aircraft in the world's fastest growing civil aviation market. Based on projected demand from Western aircraft manufacturers, engines for new passenger aircraft delivered in China could be worth more than US$100 billion over the next 20 years.
 
"Historically, all major players in aerospace have possessed both airframe and engine design capabilities," said Carlo Kopp, the Melbourne, Australia-based founder of Air Power Australia, an independent military aviation think tank. "Until China can design and produce competitive engines, the performance and capabilities of Chinese aircraft designs will be seriously limited." 
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