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-MediumWhy 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
💰💰 MediumWhy 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
💰💰💰 HighWhy 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
💰 LowWhy 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
MOFCOM Spokesperson’s Remarks on the U.S. Cybersecurity Advisory Warning of China-Based AI Companies’ Alleged Distillation Campaigns Targeting U.S. AI Models
China's Ministry of Commerce rejected a U.S. joint cybersecurity advisory (issued September 8 by the NSA, CISA and FBI) that accused Chinese AI companies of running 'industrial-scale' knowledge distillation campaigns against U.S. frontier models. MOFCOM argues distillation is a normal, neutral engineering practice used worldwide, accuses Washington of double standards and of using national security to protect a computing-power monopoly, and points out that U.S. firms also distill Chinese open-source models. Beijing says it is open to the agreed intergovernmental AI dialogue but warns it will take countermeasures if the U.S. moves to suppress Chinese AI companies over distillation.
Chinese vice premier urges strengthening of advanced manufacturing
A Chinese vice premier used an inspection tour in Jilin Province to signal that Beijing will keep prioritizing advanced manufacturing, industrial-chain self-reliance, and the modernization of traditional industries. The remarks emphasize merging scientific research with industrial production, promoting smart and green manufacturing, and building domestic capability in research instruments, standards, and testing. No new rules, obligations, or deadlines were announced — this is a policy direction signal that previews future implementing documents.
Xi Focus: Steering China's strides toward manufacturing powerhouse
Chinese President Xi Jinping has made advanced manufacturing the centerpiece of China's economic strategy, warning that manufacturing's share of GDP has been falling too fast and must be kept at a 'reasonable' level. The 15th Five-Year Plan (2026-2030) formalizes this by calling for a modern industrial system led by advanced manufacturing, with emphasis on high-end, intelligent and green production and on self-reliance in core technologies such as chips and machine tools. This piece is a political retrospective rather than a new rule, but it confirms that foreign investment restrictions in manufacturing have already been fully removed and signals continued state backing for the sector.
Xi stresses sustained efforts to expand, strengthen advanced manufacturing
At a national conference in Beijing on September 16-17, 2026, President Xi Jinping issued instructions calling for China to expand and strengthen advanced manufacturing as a pillar of 'Chinese modernization.' Premier Li Qiang framed next-generation intelligent manufacturing — especially the 'AI plus manufacturing' initiative — as the primary direction, alongside self-reliance in industrial chains, green and low-carbon development, and cross-sector integration. The event signals high-level political priority rather than a new binding rule; concrete obligations will come later through ministry implementation plans, standards, and support measures. It matters because it telegraphs where industrial policy money, pilot programs, and regulatory attention will flow over the next several years.
China releases 5-year development plan for electronic information manufacturing sector
China's Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC) jointly released a five-year development plan for the electronic information manufacturing industry covering 2026-2030. The plan sets hard targets, including combined revenue of more than 30 trillion yuan for larger firms and R&D spending intensity of 3.5 percent, and names integrated circuits, advanced computing, consumer electronics, basic electronics and energy electronics as priority areas. It signals that Beijing will keep pouring policy support into chips, AI-driven devices and next-generation terminals as the sector tries to move up the global value chain.
China improves investment mechanism to advance rural revitalization
China has issued a plan to improve investment mechanisms for rural revitalization, jointly released by the Ministry of Agriculture and Rural Affairs, the NDRC, the People's Bank of China, and other agencies. The plan aims to increase fiscal, financial, and social capital support for agriculture and rural areas, setting a 2030 goal for a balanced and efficient investment structure. It emphasizes government funding leadership and coordinated use of bonds, loans, insurance, subsidies, and pricing policies. This is a broad policy framework rather than an immediately enforceable rule, signaling future investment opportunities rather than direct obligations.