China has ascended to the ranks of a global superpower in the past decades and is now a dominating presence in almost every industry. The aerospace industry, in particular, has been a major beneficiary of China’s economic growth and has experienced rapid expansion in recent years. This exponential growth has drastically changed the competitive landscape of global aviation and space exploration, with China now firmly established as a formidable global leader in the aerospace field. This article examines the impact of China’s aerospace industry on global competitiveness, drawing on recent developments and performance in the sector.
China’s Growth in the Aerospace Industry
In the last few decades, China has dedicated vast resources to the development of its aerospace industry. Developments such as the launch of China’s first domestically-built passenger aircraft, the C919, have shown the Chinese government’s commitment to becoming a major aerospace power. In the last ten years, China has been the fastest-growing aerospace economy, having seen an average growth rate of 9.3%. In 2018, the Chinese aerospace industry grew by 18.5%, with the contribution of the Chinese aircraft manufacturing industry to the global market rising to 15%.
The Chinese government has long seen the aerospace sector as a key area of strategic investment. In addition to major investment into research, development, and production, China has also implemented policies to increase the competitiveness of its aerospace industry. These policies have included tax rebates, preferential treatment of aerospace companies on the stock market, and restrictions on foreign investment.
China’s Growing Global Competitiveness
The rapid growth of China’s aerospace industry has led to an increase in its global competitiveness. Due to the government’s investment into the sector, Chinese aerospace companies have been able to develop innovative technologies and products that have enabled them to compete with global leaders in the aerospace field. For instance, the China Aerospace Science and Technology Corporation has developed a range of cutting-edge commercial aircraft, including the C919, which is the pride of China’s aerospace industry.
The growth of China’s aerospace industry has not gone unnoticed, as the sector has become increasingly attractive to foreign investors. In 2018, Chinese aerospace firms received $1.73 billion in foreign investment, up 16.6% from the previous year. Chinese aerospace firms have also formed partnerships with top global aerospace companies, such as Boeing and Airbus, to both enhance their competitiveness and create joint-venture projects.
Impact on Other Markets
The rise of China’s aerospace industry has had a profound impact on other countries’ markets. For instance, the increasing presence of Chinese aerospace companies in the global market has led to a shift in market share in the aircraft manufacturing industry away from Europe and the US. This has caused tension between the two regions and their aerospace companies, as the dominance of Chinese firms has made it harder for Western companies to compete.
China’s success in the aerospace industry has also made it harder for other countries to keep up due to lack of resources. This has forced many countries to concentrate their resources on specific areas of aerospace technology, such as satellites and rockets. Due to this resource disparity, China has emerged as a global leader in the satellite industry, with its satellite manufacturers dominating the global market.
It is evident that China’s aerospace industry has drastically changed the global competitive landscape in the past few years. China’s commitment to the sector, coupled with government policies that have enabled it to attract foreign investment and form partnerships with global leaders, have allowed it to become a formidable force in the aerospace field. This has allowed Chinese firms to develop innovative technologies and products, while also creating tension in other markets as Chinese firms have become more competitive than their foreign rivals. It remains to be seen how other countries will react to the expanding power of China’s aerospace industry, but for the moment, the Chinese government’s aggressive investments into the sector show little sign of slowing.
