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China's aviation industry plans to circumvent punitive tariffs – Airbus to help

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In the context of international trade relations, the Chinese aviation industry is currently facing a difficult challenge: The Chinese government is considering involving the European aircraft manufacturer Airbus in the supply of engines for the new C919 passenger jet. This could allow the state-owned aircraft manufacturer COMAC (Commercial Aircraft Corporation of China) to circumvent a series of US punitive tariffs that play a key role in the trade conflict between the US and China.

The C919, a next-generation passenger aircraft being developed by COMAC, is intended to make the Chinese aviation industry less dependent on Western manufacturers such as Boeing and Airbus. The C919 is touted as China's flagship aircraft in the aviation industry and is intended to directly compete with the Airbus A320neo and Boeing 737 MAX. First delivery of the C919 is planned for 2025, and COMAC has already received large orders from Chinese airlines such as Air China and China Eastern Airlines.

The challenge, however, concerns the aircraft's engines. The C919 is currently powered exclusively by the LEAP-1C engine from CFM International, a joint venture between General Electric (GE) of the United States and Safran of France. Amid the ongoing trade dispute between the United States and China, CFM International's engines have been targeted by heavy tariffs imposed by the Chinese government on US products. This has created significant uncertainty regarding the supply of the engines, as COMAC and the Chinese aerospace industry rely on sufficient supply to ensure C919 production.

Strategic plan to circumvent tariffs

To overcome this hurdle, the Chinese government is now considering, according to media reports, involving Airbus in the supply process for the C919 engines. One proposal currently under consideration would involve Airbus supplying an additional set of engines for the C919 when delivering aircraft to China. These engines could then be classified as European products, meaning they would not be subject to the high US sanctions and tariffs imposed on products from the United States.

The idea is to import the engines through Airbus rather than directly from CFM International, based in the US. This would circumvent the 125 percent tariffs on US products imposed by China in the wake of the trade war against the US. This move would not only allow COMAC to avoid the tariffs but also ensure that sufficient engines are available to meet the planned production and delivery of the C919 aircraft in the coming years.

The geopolitical background and the trade war

The idea of ​​sourcing the engines through Airbus is not only an economic decision, but also a political one. The trade war between the US and China, which reached a new peak under the presidency of Donald Trump, led to a series of high punitive tariffs on products from each other. In 2018, the US imposed tariffs of 145 percent on Chinese imports, to which China responded with its own countermeasures, including the 125 percent punitive tax on US products. This tariff policy also affects important suppliers in the aviation industry, such as CFM International, the sole supplier of the LEAP-1C engine for the C919.

It's an open secret that the Chinese aviation industry is striving to reduce its dependence on US technologies. The development of the C919 is part of a larger plan to strengthen domestic manufacturing capacity and become internationally competitive. However, given geopolitical tensions and the fact that the C919's engines come almost exclusively from the US, production of the aircraft is under considerable pressure.

The alternatives – a Chinese engine as a long-term solution?

However, the long-term solution for China's aviation industry may lie in its own engine development. The state-owned Aero Engine Corporation of China (AECC) is currently developing the CJ-1000A, an engine that could serve as a potential alternative to CFM International's LEAP engines. However, the CJ-1000A is still in the testing phase, and it is unclear when the engine could enter commercial service. The development horizon of this engine is uncertain, which is why COMAC and the Chinese aviation industry will remain dependent on CFM International's engines until a sufficient Chinese alternative is available.

The time pressure and the challenges

COMAC reportedly has enough engines in stock to ensure production of the first C919 aircraft until 2025. However, production is expected to increase significantly starting in 2026, which could lead to a shortage of the required engines. Therefore, the search for solutions to maintain the engine supply chain is becoming increasingly urgent.

China is under considerable pressure to build a self-sufficient, stable supply chain for its aviation industry in order to become independent of Western suppliers and strengthen its position in international markets. In this regard, the collaboration with Airbus could represent a temporary solution until China is able to produce its own engine on a large scale.

A geopolitical chess game

The Chinese government's consideration of involving Airbus in the engine supply for the C919 is another example of the impact of the trade war on the international aviation industry. It demonstrates the complex and multifaceted influence of geopolitical relations on modern aviation production. While COMAC and the Chinese aviation industry continue to rely on the success of the C919, the question remains whether it will be able to become independent of Western technologies in the long term. In any case, international cooperation and the geopolitical situation will continue to play a central role in the development and production of aircraft and engines.

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