Explainer | Chinese aviation firm Avic: why is it on a US sanctions list and what do we know about it?

Name: Three more Chinese C919 passenger jets to start test flights by late 2019
Uploaded: 2021-03-28T07:00:06.000Z
Duration: 1 min 7 s
Description: Three more Chinese C919 passenger jets to start test flights by late 2019

The Aviation Industry Corporation of China (Avic) plays a dominant role in R&D, operations, manufacturing and financing in China’s aviation industry

The state-owned aerospace contractor has begun raising alarm bells in Washington in recent years for its overseas ventures and ties to the Chinese military

Reading Time:5 minutes

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Avic and its subsidiaries are involved in the manufacture of some of China’s leading aircraft, including the C919 (pictured) and fighter jets like the J-10, J-11, and J-20. Photo: CWH

Amanda Lee

Published: 3:00pm, 28 Mar 2021Updated: 8:46am, 29 Mar 2021

The Aviation Industry Corporation of China (Avic) is at the forefront of China’s plan to become more technologically self-reliant and a key supplier for a commercial aircraft that Beijing is trying to bring to market.

But it has also been caught in the crossfire as relations between Beijing and Washington have deteriorated in recent years.

In December 2020, seven of its subsidiaries landed on the US Commerce Department’s list of Chinese companies with alleged military ties. As such, they are subject to a licensing requirement for certain sensitive items that are described in US export control regulations.

The state-owned military aerospace contractor was also placed on the US Department of Defence’s list of civil entities with ties to the Chinese military in June 2020, meaning it is subject to a US investment ban.

Here’s a deeper look at the company and why it has found itself in Washington’s crosshairs.

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Three more Chinese C919 passenger jets to start test flights by late 2019

What is Avic?

Headquartered in Beijing, Avic is an aviation and defence company controlled by the State-owned Assets Supervision and Administration Commission (Sasac), the powerful agency that oversees China’s state sector, including some of the world’s biggest companies in industries such as steel, energy, shipping, telecoms, defence and aerospace.