Despite the Chinese Communist Party’s constant hope for the first domestically produced passenger aircraft by Commercial Aircraft Corporation of China (Comac), the C919, to challenge the market dominance of Boeing and Airbus, the fate of the C919 is drawing more attention amid escalating trade tensions between China and the United States. Given that key components of the C919 heavily rely on American suppliers, if the Trump administration halts exports, the C919 could face trade disruptions. Analysts warn that this could not only threaten the production expansion plans for the C919 but also impact the maintenance of already operational aircraft.
The critical components of China’s domestically produced large aircraft, the C919, are supplied by foreign vendors, with a significant portion coming from the United States. The aircraft’s engines are the CFM Leap, produced by a joint venture between General Electric Aviation and Safran Group of France; cockpit systems, landing gear, and aircraft brake systems are provided by U.S.-based Honeywell. Various technologies also originate from Collins Aerospace Group under RTX among others.
Moreover, companies such as RTX, Crane Co., Parker Hannifin Corp., and other American companies support the manufacturing of the C919; many U.S. companies, including Honeywell and Parker Hannifin, have established joint production facilities in China.
According to a report by the Financial Times on May 6th, analysts suggest that most Western components of the C919 do not have ready alternatives within China. Richard Aboulafia, Managing Director of aviation consultancy firm AeroDynamic Advisory, stated that this means the U.S. “can shut down (production) from Commercial Aircraft Corporation of China at any time.”
Dan Taylor, Director of Advisory at IBA, mentioned that although the engine provider, CFM International, continues production in France and elsewhere, the core modules are manufactured in Ohio, USA. If Commercial Aircraft Corporation of China cannot access these core modules, it could pose significant challenges for the company.
Bank of America analyst Ronald J. Epstein stated in a report that “most Chinese suppliers of the C919 do not provide high-value sub-systems such as engines, control systems, avionics, or propulsion systems.”
British aerospace and defense analyst Sash Tusa remarked that while the U.S. government has not yet ordered a halt to the supply of parts to the C919, “this could be the next step.” Aviation analysts indicate that Commercial Aircraft Corporation of China’s ongoing after-sales service, including maintenance and support for operational C919 aircraft, would also have to rely on U.S. suppliers.
Although Commercial Aircraft Corporation of China may still have some inventory, if the U.S. decides at some point to restrict the export of critical components to China or if the Chinese government stops purchasing aircraft parts from the U.S. amid the U.S.-China trade war, Epstein mentioned that the C919 project could come to a halt or fail.
The Chinese government seems to have realized the risks that the U.S.-China trade war poses to the C919. Last Tuesday, the Chinese Ministry of Commerce stated that China is willing to support normal cooperation with American companies. Just a few days ago, China also requested Chinese airlines to reject new aircraft from Boeing. Simultaneously, China quietly granted tariff exemptions to some American imports, including several aviation-related products. Safran Group announced last week that Beijing had granted tariff exemptions to certain aerospace components. Without these exemptions, these products would face tariffs as high as 125%.
Previously, The Wall Street Journal reported that aircraft engines are key components difficult for Chinese domestic competitors to replicate effectively. If the U.S. cuts off the channels through which Chinese enterprises acquire these critical components amid the escalating trade war, it will endanger China’s aerospace plans, including the development of the larger C929 that Commercial Aircraft Corporation of China is working on.
The report also stated that in terms of preventing U.S. companies from supplying Commercial Aircraft Corporation of China, President Trump holds significant power. This action was considered by the Trump administration during its first term. Washington has repeatedly prohibited the supply of other technologies to China based on U.S. national security concerns, such as advanced semiconductor processes.