General Aviation in China

China: a country with potential that seems to be limitless and an economy that seems to be booming.  In General Aviation terms, Chinese companies are taking a strong interest in improving and growing the industry, not only within their borders, but internationally.

There are numerous companies throughout the United States that have been around for years, established themselves, and, due to economy hardships or an eye for growth, have decided to team up with Chinese companies.  Hawker Beechcraft, which seems to have been under the spotlight for bankruptcy and then the proposed purchase by a Chinese firm, is not the first to have ties to China.  According to a number of sources, the Beechcraft deal did not go through because terms could not be met to satisfy the needs of both parties.  Cessna is a prime example of a company that decided to expand.  In March of 2012, Cessna agreed to team up with Chinese investors to build business jets that would meet Chinese standards.  Cessna saw this as beneficial to their company because, not only was Cessna able to keep all the employees that it had prior to the deal, the deal expanded their company internationally and opened more opportunities for employment.  In addition to Cessna, Cirrus Industries, Inc., which is the parent company of Cirrus Aircraft, was purchased by a Chinese company.  Cirrus did not see a cut in any employees but was immediately granted $150 million in order to finish the development of the Vision jet project, a light jet in which production had been slowed for years do to finances.

There are a number of reasons for the rapid growth of General Aviation in China.  The most notable and important in my opinion is the 2010 announcement by the government of China that would open up low-altitude airspace specifically for General Aviation.  Prior to this announcement, General Aviation in China was very limited and as few as 150 GA-purpose airports.  By 2020, they hope to have an additional 100 airports built.

In the big picture, by GA manufacturers from the United States branching out, introducing product in China, and building relationships abroad, this benefits everyone.  As made very clear by companies that have already made those bonds, Americans will not loose their jobs; if anything, job growth and potential may improve throughout the industry.  Cessna is a great example of this; they are still producing all their aircraft stateside and then shipping the aircraft so that China can finish the product in accordance with their standards and requirements.  While many Americans hate seeing businesses go this route, I don't believe that it will harm General Aviation in the United States.

References

Associated Press.  (18 October, 2012).  Hawker beechcraft sale to Chinese firm collapses.  Retrieved from: http://www.cbsnews.com/8301-34227_162-57535483/hawker-beechcraft-sale-to-chinese-firm-collapses/

Clyde & Co. (September, 2012). Update: general aviation in China.  Retrieved from: http://www.clydeco.com/uploads/Files/Publications/2012/General_Aviation_in_China_19.09.12.pdf

Hegeman, R.  (16 July, 2012).  U.S. plane makers teaming up with Chinese firm.  Retrieved from: http://www.manufacturing.net/news/2012/07/us-plane-makers-teaming-with-chinese-firms

Niles, R.  (28 February, 2011).  Cirrus acquired by Chinese company.  Retrieved from: http://www.avweb.com/avwebflash/news/Cirrus_Acquired_By_Chinese_Company_204192-1.html

3) What is the relationship between these U.S. general aviation manufacturers with ties to China, and the growth in the Chinese general aviation industry?

4) Most importantly, what does all of the above mean for career opportunities in the U.S. general aviation sector?