The following is based on a translation of a report on a Chinese news site:
According to a China Times’ report carried on mil.huanqiu.com, in order to pool all resources for the production of aircraft engines that must catch up with the products of world advanced aircraft engine producers such as CFM international by 2020, China is to merge all its aircraft engine producers under various aviation enterprises into one independent enterprise so that it can concentrate the human, technological, material, financial and other resources.
The report says that the government will inject more than $16 billion into the new enterprise as it knows aircraft engines are the bottleneck in China’s development of the aviation industry.
As no major aircraft engine producers in the West are independent from aircraft producers, China’s approach to have an engine producer independent from aircraft producers is quite new.
The report continues that in this way, aircraft producers may focus on development of the aircraft with engines imported from Russia and other countries to save time in developing the aircraft the government orders them to develop.
As a result, there is no pressure to produce good engines independently.
The report concludes that when an engine producer is an independent entity, it has to produce engines at least as good as the import replacement for aircraft producers, otherwise, it will have no source of income.
Source: China Times “Aircraft engines will be split from China aviation industry to be merged into a new state-owned enterprise” (summary by Chan Kai Yee of the report in Chinese)
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