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Aerospace & Aviation in China

Aircraft manufacturing, MRO services, space technology, or aviation components. China is expanding its domestic aerospace industry rapidly.

Best Cities for Aerospace & Aviation

Top destinations matched to your industry, with specific incentives and cost profiles.

#1 Xi'an

💰 Low-Medium
Shaanxi

Why this city:

China's aerospace capital. AVIC, AECC, CASIC headquarters. Yanliang National Aviation Base. COMAC C919 components manufacturing. 3rd most universities in China - strong aerospace engineering talent.

Key incentives:

Aerospace city subsidies; western region 15% CIT

#2 Tianjin

💰💰 Medium
Tianjin

Why this city:

Airbus A320 final assembly line (Asia's only). COMAC delivery center. Tianjin FTZ aerospace cluster. Strong in helicopters and UAV manufacturing. Port access for large component shipping.

Key incentives:

FTZ aerospace zone; Airbus supply chain cluster

#3 Shanghai

💰💰💰 High
Shanghai

Why this city:

COMAC headquarters + C919/CR929 design center. AVIC Commercial Aircraft Engine. Strong MRO cluster at Pudong Airport. Aviation finance and leasing hub.

Key incentives:

COMAC supply chain; Lingang aviation park

#4 Nanchang

💰 Low
Jiangxi

Why this city:

AVIC Hongdu (trainer aircraft, missiles). China's first aviation industrial base (established 1951). Yaohu Aviation City with 50+ aviation companies. Low operational costs for manufacturing.

Key incentives:

Aviation City subsidies; low-cost industrial land

Relevant Policies

Taxation 🤖 AI Summary Recently Updated

China's tax support for innovation, manufacturing tops 1.91 trillion yuan in H1 2026

China's State Taxation Administration reported that tax support for innovation and manufacturing reached 1.91 trillion yuan in the first half of 2026. This reflects continued government efforts to reduce tax burdens on R&D-intensive and manufacturing enterprises, encouraging technological development and industrial upgrading. The scale of support signals sustained fiscal commitment to these strategic sectors.

August 4, 2026
Industry 🤖 AI Summary Active Policy

China to conduct 500-bln-yuan MLF operation to sustain banking liquidity

The People's Bank of China (PBOC) announced a 500 billion yuan (about $73.6 billion) one-year Medium-term Lending Facility (MLF) operation to maintain ample liquidity in the banking system. The operation uses variable-rate tenders with fixed quantity and a multiple-price auction. With 400 billion yuan maturing this month, the net injection is 100 billion yuan, supporting bank lending and economic stability.

July 26, 2026
Trade 🤖 AI Summary Active Policy

Fourth Meeting of the Sub-Committee on Trade and Investment of the China-Thailand Joint Economic and Trade Commission Held in Bangkok

China and Thailand held the fourth meeting of their Sub-Committee on Trade and Investment in Bangkok on July 9, 2026, co-chaired by Vice Minister of Commerce Yan Dong and Thailand's Vice Minister for Commerce Piyanuch Wuttisorn. The two sides discussed deepening bilateral trade and investment cooperation, with Thailand seeking enhanced collaboration in agricultural trade, e-commerce, and SMEs, and expressed readiness to improve the business environment for Chinese firms investing in Thailand. This meeting reinforces ongoing economic ties and signals continued market access and trade facilitation between the two countries.

July 26, 2026
Incentives Active Policy

Hainan FTP — Zero-Tariff Expanded + Offshore Headquarters Incentive 2.0

Hainan Free Trade Port expanded its zero-tariff policy to cover all production equipment and raw materials (previously limited to select categories). A new "Offshore Headquarters 2.0" incentive offers qualified multinational regional headquarters 5% effective CIT rate and full foreign exchange convertibility within the FTP.

May 1, 2026
Technology Active Policy

Shanghai Lingang — Cross-Border Data Transfer Green Channel

Shanghai's Lingang Special Area launched a "green channel" for cross-border data transfers, allowing qualified enterprises to export operational data without the standard security assessment. This is specifically designed for multinational R&D centers, financial data processing, and global supply chain management systems operating from Lingang.

April 25, 2026
Industry Active Policy

Jiangsu — Advanced Manufacturing Foreign Investment Action Plan

Jiangsu province released an action plan specifically targeting foreign investment in advanced manufacturing. The plan covers semiconductor fabrication, new energy vehicles, industrial robotics, biopharmaceuticals, and aerospace components, with dedicated industrial land, utility subsidies, and supply chain integration support.

April 10, 2026
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