As part of the local capability building roadmap, the Chinese government has been luring Airbus and Boeing to build locally by doling out large orders for their jets. The latest in this case is the huge Air China order worth $3.1 billion for Airbus A330 jets.
The Chinese government agency COMAC has been trying to build jets on its but its effort have been more of test dummies at best which are still lagging behind the industry standard features and technology. IN order to jump-start itself into the big boys league of the Boeings and the Airbuses of the world. The government has used the large market potential to its advantage whereby its handing out large orders to satisfy its market need by making the manufacturers move a lot of manufacturing locally to China whereby local agencies can use this as a launching pad to gain a foothold of the latest technology.
With the new Airbus facility coming on-board in Tianjin, the market is sure going to witness an explosive order book being built up before the local jet manufacturers come up to the level and start selling their own jets. Overall its a big win for the local manufacturing industry as it will get them instant access to the cutting edge technology without any additional lag time. What are your thoughts on this? Let me know in the comments below.