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Airbus deal may make China a production hub
(AFP)
Updated: 2005-12-07 07:40
SHANGHAI (AFP) - Promises of aerospace technology transfers that helped
Airbus clinch its largest-ever order from China could be the first step towards
the Asian nation becoming a jet production hub.
A key incentive of
allowing China to produce Airbus jets for the first time was attached to the
deal clinched on Monday for 150 mid-range A320 planes worth nearly 10 billion
dollars at list prices.
The cooperation protocol agreed to a day earlier foresees the "possibility"
of establishing an Airbus assembly plant in China that would turn out
single-aisle planes such as the A320.
"It's a very clever move as it obviously brings China into the equation in
terms of developing its own capacity," said Ian Thomas, an analyst at the
Sydney-based Centre for Asia Pacific Aviation.
"China has a fledgling aircraft manufacturing operation of its own that is
nowhere near in the same league as either Airbus or Boeing but no doubt would
like to be.
"So from that point of view it brings a lot of value to China... and to
actually set up a manufacturing facility in that country is a big bonus."
China has repeatedly stated its ambitions of building large passenger jets by
2020 although it is still struggling to develop a market for domestically built
jets of 70 to 90 seats.
The secretary general of European aerospace and defence equipment body GEAD,
Olivier Gorge, has already warned Europe's aviation industry needed to be
careful not to give away all its trade secrets in its rush to win business in
China.
"It is necessary to be sure, therefore, that French technology in terms of
aerospace equipment does not go to China through production sub-contracting,"
Gorge told AFP in an interview last week.
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