On the heels of issues with the Boeing 787 Dreamliner’s battery malfunction, China is making its own declaration to the aviation industry: Domestic Production. And with the Dreamliner fleet’s grounding weighing on the industry, it could create opportunity.

The Chinese government released an aviation and aerospace development plan that outlines their goals for the next decade– and as the world’s fastest growing air-travel market, it has a lot of room for growth. China is eyeing parts manufacturers, materials producers, leasing businesses, cargo airlines and airport operators as potential opportunities for domestic production.

Authorities will seek to transform airports in the cities of Beijing, Shanghai and Guangzhou into international hubs, according to a State Council plan posted today to the Civil Aviation Administration of China’s website. They’ll also encourage the development and use of Chinese-made regional jets and general aviation aircraft and accelerate reform of how the country’s airspace is managed, it said.

“The government is sending a clear message that aviation is very important,” said Li Lei, a Beijing-based analyst at China Minzu Securities Co. “But the current problems such as airspace restrictions or airport slot limits won’t change overnight.”

Chinese carriers will need 5,260 new planes worth $670 billion through 2031, according to Boeing Co. forecasts.

An Airbus A320 nears completion in Tianjin. China now rivals the United States as a market for civilian aircraft and is pushing to increase its domestic production.

An Airbus A320 nears completion in Tianjin. China now rivals the United States as a market for civilian aircraft and is pushing to increase its domestic production.

Full Article here, from Bloomberg.

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