The Aviation Industry Corporation of China (AVIC) is a Chinese state-owned publicly-tradedaerospace and defense conglomerate headquartered in Beijing. AVIC is overseen by the State-owned Assets Supervision and Administration Commission of the State Council. It is ranked 140th in the Fortune Global 500 list as of 2021,[2] and has over 100 subsidiaries, 27 listed companies and 500,000 employees across the globe.[4] AVIC is also the sixth largest defense contractor globally as of 2022 and second largest Chinese defense contractor with total revenue of $79 billion (from both defense and non-defense services).[5]
History
Since being established on 1 April 1951 as the Aviation Industry Administration Commission,[6] the aviation industry of the People's Republic of China has been through 12 systemic reforms.
AVIC purchased American aircraft engine manufacturer Continental Motors, Inc. in 2010, aircraft manufacturer Cirrus in 2011, and specialized parts supplier Align Aerospace in 2015.[7] In 2015, AVIC and BHR Partners acquired U.S. automotive supplier Henniges, through a joint venture structure.[8]
In 2016, Aero Engine Corporation of China was formed, capitalized with US$7.5 billion by Aviation Industry Corporation of China (AVIC) and Commercial Aircraft Corporation of China, Ltd. (COMAC) in order to consolidate aero-engine and related technologies.
Period
Organization name
Apr 1951 – Aug 1952
Aviation Industry Bureau, Ministry of Heavy Industry
Aviation Industry Corporation of China, Commercial Aircraft Corporation of China[Note 1]
Split and re-merger
China Aviation Industry Corporation was split into two separate entities, China Aviation Industry Corporation I and China Aviation Industry Corporation II in 1999. Both retained civilian and military aircraft production capabilities, along with a number of unrelated business ventures. The split was intended to foster competitiveness in the Chinese aerospace industry.[9]
In 2008, AVIC I and AVIC II officially merged back together. The previous separation resulted in split resources and led to redundant projects. The goal of the merger was to eliminate this redundancy and spin off pursuits unrelated to aerospace, such as motorcycle and automobile parts manufacturing.[10]
In April 2009, The Wall Street Journal reported that computer spies, allegedly Chinese, "had penetrated the database of the Joint Strike Fighter program and acquired terabytes of secret information about the fighter, possibly compromising its future effectiveness."[11] AVIC allegedly "incorporated the stolen know-how into China's Chengdu J-20 and Shenyang FC-31 fighters."[12][13][14]
^Nolan, Peter (2001). China and the Global Economy: National Champions, Industrial Policy, and the Big Business Revolution. New York: Palgrave. p. 30. ISBN0333945654.
^Lu, Haoting; Xu, Dashan (18 June 2008). "AVIC I & II closer to merger". China Daily. Archived from the original on 6 October 2022. Retrieved 24 March 2020.
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