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
China unveils five-year plan to strengthen industrial foundation, upgrade manufacturing
China's Ministry of Industry and Information Technology, together with other departments, released a five-year plan to strengthen the country's 'industrial foundation' — the core components, basic materials and foundational software that underpin manufacturing. The plan acknowledges that China's industrial base is large but weak at the high end, especially in integrated circuits and industrial software, and sets a goal of significantly easing those gaps and reaching internationally advanced capability levels by 2030. It also targets cultivating more 'single-champion' manufacturers and specialized 'little giant' firms in this sector. The document is a strategic roadmap rather than a set of binding rules, so concrete obligations will follow in separate implementing measures.
China mulls policies to accelerate smart manufacturing
China's Ministry of Industry and Information Technology says it is drafting a new set of policies for next-generation smart manufacturing that would embed artificial intelligence across the entire production chain. The plan would use a tiered system of basic, advanced and top-tier smart factories, plus support for smarter machine tools, robots, inspection equipment and industry-specific AI models. No rule or obligation exists yet — this is a policy signal of direction, backed by existing figures such as 13,000+ advanced smart factories and 2,592 EFLOPS of smart computing power. It matters because it flags where subsidies, standards and equipment-upgrade demands are likely to flow next.
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.