The Dragon Takes Flight

China's Aviation Policy, Achievements, and International Implications

Series:

The Dragon Takes Flight: China's Aviation Policy, Achievements, and International Implications analyzes China’s journey toward the development of its C-919 large passenger aircraft. Through the use of primary sources in English and Chinese, including interviews with important players in China’s aviation industry, Levine builds on Michael Porter’s Diamond Model to explore the underlying question of whether or not China will successfully develop a competitive large passenger aircraft. The model serves as a blueprint for determining what China is doing right and what areas need to improve.

This study also looks at the potential implications the success of the C-919 may have on Boeing and Airbus and the ways in which both companies might prepare to meet the challenges they face.
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Biographical Note

Derek A. Levine, Ph.D. (2012), University of Denver, is an Adjunct Assistant Professor of Asian Studies at City College New York. He has published articles on China for MSNBC and on China’s Aviation Industry in the Journal of Contemporary China and the American Journal of China Studies.

Table of contents

Chapter One: Introduction
China's Commercial Aviation Policy
Implications for the United States and Europe
Facilitating Fair Competition
Research Study
Theoretical Framework

Chapter Two: Evolution of the Large Passenger Aircraft Industry Government Airline Regulation
Jet Engine Competition Revolutionizes the Industry
Competition Among American Aircraft Manufacturers
The European Consortium: Airbus Fills a Niche in the Market
Deregulation of the American Market
Differences in Industrial Policies of Boeing and Airbus 56
Airbus Challenges Boeing In Various Sectors of the Market
U.S. Response to European Subsidies
Airbus Accusation of U.S. Indirect Subsidies
Failure of GATT Agreement
Conclusion

Chapter Three: The Development of the Y-10 Passenger Aircraft
Predatory State under Mao
Porter's Diamond of National Competitive Advantage
Porter’s Determinant Model and its Application to the Y-10
Demand for the Y10
Factor Conditions for the Y-10
Related and Supporting Industries
Suppliers and Related Industries Involved in the Making of the Y-10
Firm Strategy, Structure Organization and Rivalry
Y-10 Structure, Organization and Rivalry
Conclusion

Chapter Four: The Development of the C-919 Aircraft
The Intermediate State under Deng
Roles Played: Demiurge, Custodian and Midwife
Demand for the C-919
C-919: Factor Conditions
Massive Corruption in Awarding Large-Scale Research Grants
Commercial Espionage
C-919: Supporting and Related Industries
Cultural Differences Make Cooperation with M.D. Tough
Aviation-Related Industries and Suppliers
C-919: Firm Strategy, Structure and Rivalry
Conclusion

Chapter Five: Airbus and Boeing Strategies to Compete with the C-919
The Aviation Industry under the Predatory State (1949-1970)
Reform: The Aviation Industry Transitions toward an Intermediate State
Road to the WTO
Aircraft Acquisition
CAAC Maintains Control over Key Resources in Aviation
Airline Manufacturers Entering the Narrow-Body Market
China’s Plan for Meeting its Demand
Potential Impact in Boeing
Potential Impact on Airbus
Boeing’s Plan for Competing in the Narrow-Body Market
U.S. and European Strategies for Meeting the China Challenge
Conclusion

Chapter Six: Conclusion
Predatory State
The Intermediate State
Commercial Espionage
Competing with the C-919
Strengths and Weaknesses of the Framework
The Framework and Other High-Tech Industries
The Automobile Industry
Differences between the Aviation and Automobile Industries
High-Speed Rail
Similarities between High Speed Rail and Aviation Industries
Creating a Competitive Advantage for Free Market Competition

Bibliography

Appendices
Appendix A: Interview Questions
Appendix B: Statistical Data and Tables on China

Readership

Political Scientists, Businessmen/women, Sinologists, Practitioners, Historians, Aviation Specialists, institutes, academic libraries, public libraries.

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