The restructuring of China Aviation Industry Corporation (AVIC) I and II into a single entity will open a firewall between civil and military programmes that has so far served to allay Western fears that helping China develop technologically advanced civil aircraft may inadvertently help its military.

Now, says AVIC, the company "will uphold the principle as to connect the defence and commercial development and achieve synergy between the military and the civil business". AVIC in the past has stressed that its civil and military businesses were separate.

AVIC, which was formed earlier this year through the merger of China's two state-owned aerospace conglomerates, AVIC I and II, is now arrayed into 10 business units focused on defence, transport aircraft, aviation engines, helicopters, avionics, general aviation aircraft, aviation research and development, flight tests, trade and logistics, and asset management. Previously, the two AVICs were structured along geographic lines, leading to regional duplication of resources and capabilities.

The fact AVIC now has a division for aviation engines and avionics reflects China's desire to develop its own systems capability.

The company is led by Lin Zuoming, previously president of AVIC I, the larger business of the two.

Source: Flight International