The core business of China National Aero-Technology Import & Export Corporation (CATIC) is mainly operated by the headquarter, which includes the development of international market for aviation products, sales of products, after-sales service and supply of spare parts; the project development, improvement and modification of export models, export of technology and introduction of ancillary services; and providing professional services such as market analysis, business planning, contract negotiation, project management, international trade, investment financing, foreign liaison, and other value-added services for the key projects and products of the state, the Group and the local governments, as well as the enterprises and institutions under the Group. It also provides value-added professional services such as market analysis, business planning, contract negotiation, project management, international trade, investment financing and external liaison for national and local government projects and products, as well as for foreign cooperation and subcontract production of enterprises and institutions belonging to the Group. Trade extension business is the expansion and extension of core business of AVIC, including the export of bulk government products, the export of ships and large-scale complete sets of equipments as well as general trade business. Synergistic development business is an important part of AVIC's diversified business and industrial foundation, including electronic manufacturing, retailing, watch industry, real estate, hotel and property management businesses. The support service business is an important support for the core aviation business, trade extension business and synergistic development business, and is also an important manifestation of the specialized service capability of AVIC, including bidding, equipment procurement, storage and logistics, e-commerce and overseas marketing network.
The overseas marketing system related to aviation and non-aviation businesses is mainly composed of the company's overseas organizations, including information collection, market analysis, project development, product sales and after-sales service. After decades of practice, AVIC has cultivated a large number of high-quality talents and sound working system who are familiar with domestic and overseas markets, know the rules of international trade, have the knowledge of commercial law, and are proficient in the operation of project management and marketing ability.
CATIC is a state-authorized marketer of aviation products, exporting aviation products including all kinds of military aircraft, civil aircraft and their engines, airborne equipment, ground equipment, maintenance equipment and spare parts, etc., with more than 1,000 aircraft sold and users in more than 30 countries. In the research and development of aviation products, AVIC has invested in the development of EC120 helicopters with Eurocopter and New Aerospace, and in the development of K8 trainer and JF17 fighters with Pakistan Air Force. In order to meet users' demands, AVIC has always been committed to the improvement of after-sales protection ability and service level. Through round-the-clock technical support, it helps users to keep the aircraft in the best use condition. Meanwhile, it has several spare parts centers in the user countries, so that users can obtain product and service support quickly and provide aircraft maintenance, repair and flight training of international standard.
CATIC has undertaken a large number of key projects for the state and the aviation industry, provided technology, equipment, ancillary parts and raw material procurement services in product development, R&D, production and technical reform, and played an important role in project management and contract execution.
CATIC is also an internationally recognized aviation parts contractor, and the aviation parts it undertakes include nose, fuselage, tail section, drogue, flat tail, wing parts, all kinds of hatches, cables, etc. of Boeing and Airbus, and discs, rings, shafts, blades, etc. of GE, RR, Pratt & Whitney, Snecma, etc., and airborne equipment parts of Honeywell, Collins and Thales. Airborne equipment parts and components from airborne equipment manufacturers such as Honeywell, Collins, Thales and others.
The non-aeronautical products exported by AVIC include 10,000-ton ships, road construction machinery, food machinery, medical equipment, container inspection equipment, automobiles, motorcycles, bicycles and their spare parts, office supplies and daily-use products, etc., which are involved in various fields of the national economy. It has undertaken international projects in Asia, Africa and the Middle East. Fiat watches, Shennan circuit boards and Tianma LCD panels produced by enterprises belonging to China National Aviation Technology Corporation (CATIC) are all well-known products in China. AVIC owns three Hong Kong listed companies and three domestic listed companies. The annual turnover of Tianhong chain of commercial buildings has exceeded three billion RMB. AVIC also owns a number of office buildings and hotels in Beijing, Shanghai, Shenzhen, Zhuhai, Xiamen and other cities.
According to the development vision of "building a multinational company with international competitiveness", AVIC Technology has always carried out its work with a deep understanding of the market and special attention to its customers, and is committed to providing the best services for its customers with the requirements of "lean management, professional service, cooperation and pursuit of excellence". Taking "Lean Management, Professional Service, Cooperation, and Pursuit of Excellence" as the requirement, AVIC is committed to providing customers with high-quality products and value-added services, and reflecting the value of AVIC to the benefits of customers. Aircraft
Fighter and Attack Aircraft: J-5, J-6, J-7, J-8, J-10, JF-17 Thunderbolt, FC-20, Qiang-5
Bomber: Boom 6, FBC-1 Flying Leopard
Trainer Aircraft: Choron 6, K-8 Kunlun, J-Teach-6, J-Teach-7, L-15 Falcon
Transporter Aircraft: Yulin -7, Yulin -8, Yun-12
Helicopters: D-9, D-11, EC-120 Aircraft
Commercial passenger aircraft: Xinzhou 60, Yun-12
Civilian helicopters: D-9, D-11, EC-120 As a large-scale import and export trading company set up at the beginning of the reform and opening-up period, AVIC Technology monopolizes the right to import and export aerospace and defense products in China. The export of all defense products produced by enterprises in China's aviation industry system and the introduction of most of the products and technologies required for production need to be carried out through the relevant departments of AVIC.
This practice was not objectionable at first. After all, at the beginning of the reform and opening-up period, foreign trade became a key area of management in mainland China as foreign trade talents were scarce and foreign exchange was scarce. Most of the aviation companies in China lacked the necessary talents and experience, not to mention foreign exchange accounts and balances, so they had to rely on AVIC to carry out foreign trade. However, with the deepening development of reform and opening up, the cultivation of foreign trade talents has been flourishing, and it is no longer difficult for factories to look for qualified foreign trade talents in the talent market. With the fact that many aeronautical enterprises have started their civil product business in the late eighties and early nineties, most of them have foreign exchange accounts and balances, and should be said that they have the basic conditions to carry out foreign trade independently.
Since 2000, based on the consideration of reducing the intermediate channels and enjoying profits exclusively, some enterprises in the aviation system have constantly responded to their superiors, requesting to carry out foreign trade of aviation products independently bypassing CATIC, among which, Xi'an Aircraft Industry (Group) Co.
We have reached a certain degree of agreement and compromise with the top management of the aviation system and China National Aviation Technology (AVT) on the market division of the Xinzhou 60, in which XAIG and AVT reached an agreement to acquire the most mature Asian market that had been developed and cultivated by AVT for nearly 20 years, while AVT will continue to have the right to continue to sell the Xinzhou 60 aircraft in other parts of the world except Asia.
It should be noted, however, that after 30 years of development, AVIC has now become one of China's leading defense product suppliers with a global footprint. Currently, AVIC*** operates 28 overseas companies and representative offices, with more than 100 permanent overseas staff.
Among them, 26 overseas companies and representative offices are directly related to the import and export business of defense products, and almost all of the overseas staffs can undertake the market development and follow-up support work for the whole series of Chinese domestic defense products, and are well versed in all kinds of foreign trade negotiation rules and techniques, which make these overseas staffs one of the main constituents of the most core talent team of AVIC. In contrast, although domestic aerospace companies already have talents with knowledge of negotiation and foreign trade, they are almost amateurs in market development, and more importantly, almost all domestic aerospace companies cannot afford to maintain an overseas marketing team on a large scale. For almost few people will come to the door to look for the purchase of Chinese aviation defense products, in the field of market development to win the weak, become the elbow of the domestic aviation enterprises can not independently carry out the defense products of the biggest short board of foreign trade. From the point of view of building an intensive society as called for by the state, AVIC's marketing and service teams all over the world have greatly reduced the cost of China's international trade in aviation products, improved the efficiency of market development and marketing, and are the best overseas development option for the aviation industry at present, as compared with the establishment of marketing system by each aviation production enterprise.
At the same time, it should be pointed out that the existence of AVIC is of great significance to the Chinese government's effective control over the import and export of defense products and the prevention of the proliferation of weapons of mass destruction. At present, China is still under a lot of accusations in the field of global arms control. An integrated defense products exporter will help to unify the standards and criteria for exporting defense products, control the outflow of advanced and sensitive conventional weapons and technologies, and prevent the proliferation of weapons of mass destruction (WMD) more thoroughly. On December 28, 2005, the U.S. Department of State accused China National Aerospace Technology Corporation (AVIC) of selling Iran materials that could be used to manufacture missiles and weapons of mass destruction, and imposed economic sanctions on six Chinese companies, including AVIC, two Indian companies, and one Austrian company. The sanctioned companies will be barred from doing business with the U.S. government and will not be able to obtain export licenses necessary to purchase certain U.S. technology.
But AVIC denies all of the allegations and states that all of its defense products are traded in strict compliance with Chinese and international laws, regulations, and conventions.