China is pushing ahead with the reform of its aircraft industry, with listed company Xi'an Aircraft International taking over more assets of its state-owned parent. The move is also a step toward greater transparency in the industry, whose activities and capabilities are difficult to unravel from its many layers of holding companies.

Taikoo Aircraft Engineering Co. Ltd. (Taeco) is moving early to adapt to the coming world of composite aircraft less reliant on big, periodic overhauls. The Chinese airframe specialist company is widening its product range to aircraft systems to attract operators of new aircraft whose maintenance regime will be less well-suited to its Xiamen location, a prosperous, historic port 500 km. northeast of Hong Kong. The Boeing 777 has been an early example of the change, but the big industry shift will come with the 787 and Airbus A350.

If China succeeds in setting up a commercial aircraft industry, aerospace management know-how learned from BHA Aero Composite Parts Co. Ltd. will help. The Chinese firm, a joint venture of Boeing, U.S. materials supplier Hexcel and local aerospace group Avic I, is overcoming the challenges of competing in global aircraft manufacturing from a Chinese base, including critical cultural issues.