Executive Aerospace Trade Mission to China

Mission Statement
Executive Aerospace Trade Mission to China
September 14-19, 2003

Mission Description

The Deputy Assistant Secretary of Commerce for Transportation and Machinery, International Trade Administration (ITA), Joseph H. Bogosian, will lead an aerospace trade mission to Chengdu and Beijing, People's Republic of China, September 14 to 19, 2003. The mission will include representatives from a variety of United States air traffic control (ATC) and airport infrastructure development firms, service providers and consultants who are interested in expanding their presence in China's rapidly growing ATC and airport infrastructure market. The Commerce Department's delegation will be comprised of staff from the International Trade Administration's Office of Aerospace.

Commercial Setting

China's civil aviation sector is expected to grow more than eight percent per annum in the coming years, particularly attributable to preparations for the 2008 Olympic Games and the nation's increasingly high profile in international trade and tourism.

Geographically, China's 3.7 million square miles is slightly larger than the United States (3.6 million sq. miles), and 80 percent of China's 1.3 billion people live in the countryside, making greater access to air transportation a high priority. Currently, China's skies are controlled by the People's Liberation Army (PLA) with flight routes provided for civil and "general" aviation. The South China Morning Post and others report that new regulations applicable to any aircraft, already drafted by the joint air traffic control commission under the State Council and the Central Military Commission, are set to be effective on May 1, 2003. In these regulations, procedures governing general aviation flights are greatly simplified, cutting approval time for a flight from about one week to just six hours. This dramatic change should drive even greater growth in China's aviation market.

The General Administration for Civil Aviation in China (CAAC) forecasts that Chinese airlines will add 1,762 passenger aircraft to their fleets over the next two decades, and that the number of operating civil airports will reach 180 by 2005. The nation requires new air traffic management (ATM) technology to meet steadily increasing air traffic and the need for greater sophisticated air traffic control equipment. Virtually all modern ATM systems and equipment are imported.

According to Jane's Airport Review, over the past 10 years China has spent roughly US$1.2 billion on ATM infrastructure and equipment. The current ATM inventory includes 31 primary radars, 52 secondary radars, more than 1000 Very High Frequency (VHF) communications systems, over 160 VHF Omnidirectional Range/Distance Measuring Equipment (VOR/DME) instruments and more than 140 Instrument Landing Systems. CAAC's goal is to reduce the current 27 air traffic area control centers (ACC) to five by 2010. Three of these centers have already been established in Beijing, Shanghai, and Guangzhou, costing over US$84 million, and now handle 70 percent of China's air traffic. The final two ACCs will be built in Chengdu and Xi'an. The Air Traffic Management Bureau (ATMB) of CAAC is considering installing ground movement monitor radars and remote VHF equipment in the ACCs. An all-encompassing data network, new center-automation systems, ground-air voice/data communications and new radars will be sought after in the coming years. Mr. Miao Xuan, Deputy Director of Air Traffic Control Requirements Department, ATMB, CAAC, reports that many automatic dependent surveillance (ADS) and controller-pilot data link communications (CPDLC) stations need to be either replaced or added to the current systems to strengthen the capability of the present DATA LINK (FANS) systems. In the Western part of China where mountainous terrain limits the use of ground-based radar, alternatives will be sought.

Mission Goals

The mission's goal is to gain first-hand market information and provide access to key government officials and potential business partners for U.S. air traffic control manufacturing firms, airport infrastructure developers and service providers, and consultants desiring to establish or expand their presence in China. New opportunities for U.S. firms are being enhanced by the need for more modern ATM equipment across China.

Mission Scenario

In China, the Deputy Assistant Secretary (DAS) of Transportation and Machinery and the delegation plan to meet with various bureaus within CAAC, including the International Affairs Department, the ATMB, the Planning, Science & Technology Department, and the Policy, Laws & Regulations Department. The DAS will also lead meetings with local ATM/Airport officials in each city for the delegation to gain in-depth knowledge of developments and potential opportunities. Meetings with China's government and industry officials who hold the key to potential sales will be arranged by the Department of Commerce's Commercial Service at the U.S. Embassy in Beijing and the U.S. Consulate in Chengdu. Finally, participating U.S. firms will be introduced to potential Chinese business partners through mission events and a series of one-on-one meetings in each city.

Timetable

The mission is scheduled to arrive in Chengdu on Sunday, September 14, 2003. The mission participants will depart Chengdu on Tuesday, September 16, for Beijing. In addition to scheduled meetings, mission participants will have the flexibility to attend Aviation Expo '03 in Beijing from September 17-20. The precise schedule will depend in part on the availability of Chinese Government and company officials and the specific goals and interests of mission participants.

Recruitment for the mission will begin immediately and conclude no later than August 1, 2003. Applications received after that date will be considered only if space and scheduling constraints permit.

Criteria for Participant Selection

Relevance of a company's business line to mission goals.
Timeliness of company's signed application and participation agreement (including a participation fee of $3,900).
Potential for business in China for the company.
Minimum of ten and maximum of twenty participating companies in the mission.
Provision of adequate information on company's products and/or services, and company's primary market objectives, in order to facilitate appropriate matching with potential business partners.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department's trade missions calendar - www.ita.doc.gov/doctm/tmcal.html - and other Internet web sites, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows.

Firms attempting to market goods and services on the Mission must certify that these goods and services will be either: a) Manufactured or produced in the United States; or b) If manufactured or produced outside the United States, be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

Contact

Victoria Heilman
Office of Aerospace
International Trade Administration
U.S. Department of Commerce
Washington, D.C. 20230

Telephone: 202-482-4230
Fax: 202-482-3113
Email: Vicki_Heilman@ita.doc.gov
Web site: www.ita.doc.gov/td/aerospace

Firms attempting to market goods and services on the Mission must certify that these goods and services will be either: a) Manufactured or produced in the United States; or b) If manufactured or produced outside the United States, be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.