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In response, a whole spate of new joint ventures has been announced between Western aerospace suppliers and AVIC subsid-iaries, the most notable of which is the joint venture between CFM (itself a joint venture between GE and Snecma of France) and AVIC Commercial Aircraft Engines Co. (ACAE) to assemble the LEAP-X1C engine in Shanghai. ACAE is said to have started building a $472 mil-lion R&D center in Shanghai and hopes to start building “homegrown engines” (presumably a locally produced version of the LEAP-X) for the C919 in 2016. Every C919 contract awarded to a foreign bidder has been awarded to a joint-venture entity. And a number of compa-nies that had not established manufacturing joint ventures in China— including Nexcelle, Goodrich, Parker Aerospace, Rockwell Collins, and Liebherr—have recently entered into joint-venture agreements in connection with their C919 bids. A summary of international partners in the ARJ21 and C919 programs is provided in Tables 4.1 and 4.2.
Detailed information regarding major current and prospective joint ventures and cooperative R&D activities between Chinese and foreign companies that we were able to identify is provided below.
U.S. Companies
Alcoa, Inc.
According to an October 2009 announcement, Alcoa and COMAC are “jointly exploring” technology solutions for the design and devel-opment of the C919. Through a technology cooperation agreement, the two companies are examining advanced aluminum structural con-cepts, designs, and alloys for the new aircraft (“Alcoa and COMAC Explore Leading Technology Solutions for C919, China’s Largest Pas-senger Aircraft,” 2009).
The Boeing Company
Boeing China, Inc., is based in Beijing. It includes representatives of Boeing organizations such as Government Affairs, Commercial Air-plane Sales, Marketing, Business Development, Commercial Avia-tion Services, Alteon, Jeppesen, and Communications. As of October 2009, there were 150 Boeing employees in China and more than 6,100 employees at Boeing-related businesses (subsidiaries and joint ventures) (Fetters-Walp, 2009, p. 13).
The Role of Foreign Firms 45
Table 4.1 International Partners in the ARJ21 Program
ARJ21 Program Partners Contribution
u.S. partners Alcoa, Inc. Advanced alloys for airframes, wing and fuselage stringers, floor beams, seat tracks; fasteners and miscellaneous structural components B/e Aerospace, Inc. Oxygen equipment eaton Corporation Flight-deck instrument panel and lighting controls General electric propulsion (engines, nacelles, and accessories) Goodrich hella Aerospace Lighting equipment hamilton Sundstrand epS/high-lift/auxiliary power unit (Apu) honeywell International Flight control system integration and synthesis Kidde Aerospace (hamilton Fire protection Sundstrand subsidiary) MpC products Corporation Apu, door system parker Aerospace Fuel, hydraulic, and electrical flight controls Rockwell Collins Integrated avionics system (proline 21) Rosemount, Inc. (emerson windshield wiper and heater subsidiary) Zodiac Air Cruisers Company emergency evacuation system
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Ready for Takeoff China’s Advancing Aerospace Industry(31)
