Sunday, September 13, 2015

IT’S NO SECRET THAT CHINA WANTS TO BUILD ITS OWN COMMERCIAL JET AIRCRAFT AND AFTER OVER 10 YEARS OF DEVELOPMENT–MAYBE READY TO REVEAL THE ARJ21 XIANGFENG RE-DESIGN AFTER A 2008 TEST FLIGHT THAT HAD A WEAK WING STRUCTURE–THE SAME GOES WITH CREATING A HOME GROWN AUTOMOBILE INDUSTRY TO RIVAL THE REST OF THE WORLD BUT SEEMS TO ALSO HAVE NOT GOTTEN OFF THE GROUND AS THE SECOND LARGEST ECONOMY STARTS TO WEAKEN–YET IT HAS FOUND BUSINESS IN THE RAILROAD INDUSTRY AND HAS BECOME A WORLD LEADER SHIPPING LOCOMOTIVE EVEN TO THE US AND EU ALONG WITH AFRICA AND ASIA

For a military site, the Dachang Air Base in the northern part of Shanghai has a very civilian appearance, a little like the campus of an American university, with widely spaced bungalows and buildings, plane trees, ponds, lawns and the Volvos, Jeeps and Buicks of employees.

Along with several assistants, aviation engineer Li Jieke, 66, a tall, elegant man, is giving a tour of the grounds along with an assistant. Foreigners are an uncommon sight here, and foreign journalists are especially rare. "No photos, please," says Li, as we approach the airfield, where several People's Liberation Army jet fighter are parked in formation. "Let's take a drive over to our building instead, to the civilian aircraft."

In Dr. Li's hangar, photographs are only permitted in selected locations, and only from specific angles. The ARJ21 Xiangfeng is being assembled there. It is China's first domestically developed modern airliner, the pride of its engineers and the hope of its aviation industry. ARJ stands for "Advanced Regional Jet," and Xiangfeng means "Flying Phoenix." The number 21 stands for the 21st century.

Development of the short-haul aircraft began in 2002, and it took off on its first test flight in 2008, after a few delays. But then the wings proved to be too weak, and there were problems with the aircraft's electronics, landing gear and ice testing. Certification had to be postponed several times.

COMAC, the Chinese state-owned aviation company, plans to deliver the first aircraft this fall, five years later than planned. "It wasn't easy to get the Phoenix off the ground," says Li Jieke. "Building a safe airliner is the biggest challenge for a modern industry."

China, the world's second-largest economy and largest trading nation, produces steel and cement, manufactures garlic presses and soccer jerseys and assembles smartphones, tablets and computers. But if the government planners in Beijing have their way, China will also develop and build pacemakers, high-performance cameras and industrial robots in the future. And eventually it will also build a large jet with engines that are not produced by General Electric, like those on the ARJ21.

Beijing is extremely ambitious. No matter how difficult it is, China must build its own large aircraft after the ARJ21, said President Xi Jinping during a visit to COMAC in Shanghai last year. The president currently flies to state visits on an American aircraft, a Boeing 747. He doesn't seem to like that. "In the past, someone said the best choice for us is to rent (passenger aircraft) from others and then buy (them) and that the last option is to make our own," he said. "We have reversed this notion. We will invest more to develop and produce our own large aircraft."

A Turning Point

The world is currently very interested in the economic issues associated with this claim. Exactly how strong is China's economy? Will the country remain the "workbench of the world," dependent on ideas and orders from the West? Or will it manage to complete the jump to an innovative economy, one that can compete in high-tech fields? And will this make the country, which is mainly a buyer of high-quality German products at this point, a threat to German industry?

China's ambitions as an industrialized nation are especially apparent in the three major areas of the transportation sector: the automobile, railroad and aviation industries. This is where it becomes evident how Beijing's planners are proceeding, what they have so far achieved and what setbacks they have already endured.

All three industries are currently at a turning point. The Chinese auto market, a guarantee of growth and profit for 35 years, is in crisis. Growth rates are noticeably declining for the first time, both those of domestic automakers and of some of their international partners and competitors. The Volkswagen Group, which generates almost two-thirds of its profits in China, reported a 4-percent decline in sales in the first half of 2015. And as a result of two devaluations of the Chinese currency, the yuan, the prospects for German carmakers have been further dampened in their most lucrative market.

In contrast, the Chinese railroad industry is fast becoming a world leader. Chinese railroad companies are receiving more orders than ever before. The country's rail, locomotive and rolling stock manufacturers are not just selling their products in China and in the developing countries of Asia and Africa, but are beginning to receive orders from the United States and Europe. German national railroad Deutsche Bahn will open a purchasing office in China this fall, which is alarming news for its main supplier, Siemens. ‘

http://www.spiegel.de/international/business/chinese-transport-industry-poses-growing-threat-to-germany-a-1048739.html

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