The U.S. aerospace industry is a major contributor to U.S. exports and national security. China maintains industrial policies aimed at creating a globally competitive aviation industry. Building on previous studies by the RAND Corporation—Ready for Takeoff: China’s Advancing Aerospace Industry and The Effectiveness of China’s Industrial Policies in Commercial Aviation—the U.S.-China Economic and National Security Review Commission (USCC) asked RAND to assess Chinese investment in U.S. aviation.
In this report, the term aviation generally refers to the industry of manufacturing aircraft and does not extend to operating airlines, which is not currently threatened by Chinese competition.
Given the economic and security sensitivities of Chinese investment in U.S. aviation, the USCC asked RAND to provide the context for China’s future demand for aviation products and an update on China’s aviation industrial policies and the state of its aviation industry; to review Chinese investment in U.S. aviation and related university connections with Chinese entities; and to assess the implications of the resulting technology transfer on U.S. national security and aviation industry competitiveness.
This research was conducted within the International Security and Defense Policy Center of the RAND Corporation’s National Security Research Division (NSRD). NSRD conducts research and analysis on defense and national security topics for the U.S. and allied defense, foreign policy, homeland security, and intelligence communities and foundations and other nongovernmental organizations that support defense and national security analysis.
Click here for the full report (124 PDF pages) on the USCC website.