Protection of intellectual property is of particular interest to the US Commerce Department, which is concerned that co-operation between Chinese and US aerospace companies in the area of civil aviation might inadvertently lead to a transfer of technology that China could use to develop its military capability.
In July, the Commerce Department published a draft ruling outlining new export controls. US authorities already have strict controls, but the new draft ruling adds more items to the list, including some navigation and avionics software, propulsion systems, information security devices and items used to process "special materials". According to industry sources, the "special materials" the Commerce Commission is referring to include composites.
The US Commerce Department is pushing to have the draft ruling enacted, and says the changes are necessary because "many US companies have established significant business operations" in China. It says that while "the US and China share an interest in expanding free and fair trade... the US has a long-standing policy of not permitting exports that would make a material contribution to" China's military capability.
This draft ruling "seeks to facilitate trade for confirmed civil end-uses and end-users in China, while preventing trade that would serve military end-uses", it adds. It is difficult to differentiate between civil and military usage in China, however, as its aircraft factories manufacture for both sectors.
Some US aerospace industry sources tell Flight International that they are concerned the new rules might go too far and put the US aerospace industry at a competitive disadvantage when it comes to competing for business in China against European rivals. European authorities also limit the export of some technologies to China, but the European regulations appear to be less invasive.
Airbus China president Laurence Barron says the European regulations have caused no problems for Airbus in China. "We haven't had the same problem with European regulators," says Barron rather, the problems Airbus China has encountered are with US authorities that have adversely affected some of Airbus' US suppliers.
"The prohibited parts we have had is with US-manufactured parts in China," says Barron. "We actually had to change some parts and, in one case, switch suppliers."
He explains: "We had some US parts that apparently turned out to be on the [US prohibited] list so we had to turn to a European-made part and retro-fit the [20-odd] aircraft that had already been imported and then ensure all new deliveries were fitted with the European part."
Source: Flight International
