China Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in china, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Aviation
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China’s civil aerospace and aviation services market is the second largest globally, driven by an expanding fleet, rising passenger numbers, and growing economic influence. China is projected to become the world’s largest aviation services market by 2043. According to the International Air Transport Association (IATA), China is set to surpass the United States in domestic air traffic due to rapid growth in passengers and air routes, a trend supported by both Boeing and Airbus, who anticipate significant increases in aircraft demand.

In 2024, the Civil Aviation Administration of China (CAAC) reported record passenger traffic of 730 million and cargo/mail volume of 8.98 million metric tons, with year-on-year increases of 17.9 percent and 22.1 percent, respectively. This impressive growth is due in part to China’s massive surge in cross-border e-commerce, including sales of small packages to consumers in the United States and Europe that benefit from tariff-free “de minimis” treatment.  With de minimis treatment suspended in the United States for small-value packages from China and coming under greater scrutiny in other markets, this trend may decelerate.  

Compared to 2019, passenger traffic rose 10.6 percent and cargo/mail grew by 19.3 percent. China’s international passenger flight volumes continued a recovery in 2024, but still remain 16 percent below pre-pandemic levels, while international cargo/mail volume rose by 29.3 percent year-over-year. CAAC projects passenger volume will reach 780 million and cargo/mail volume will rise to 9.5 million tons by 2025.

China’s major state-owned airlines—China Southern, Air China, and China Eastern—reported losses for the fifth consecutive year in 2024. The average loss per airline was $286 million, a notable improvement from the $5 billion loss in 2022. Contributing factors include competition with China’s growing high-speed rail network, downward pressure on air ticket prices, subdued international demand, supply chain disruptions, and currency depreciation.

Opportunities

Despite these challenges, market growth, increasing demand for new aircraft, and the need for aviation services in China’s aviation sector provide opportunities for U.S. companies. U.S. exporters are well-positioned in areas such as Maintenance, Repair and Overhaul (MRO), Ground Support Equipment (GSE), Smart Airport Technology, General Aviation, and Advanced Technologies. According to the U.S. Bureau of Economic Analysis (BEA) and the U.S. Census Bureau, in 2024, China was the top U.S. aviation export market, with U.S. exports totaling $11.53 billion, a significant increase from $4.46 billion in 2020, driven in part by the resumption of Boeing 737 MAX deliveries in July 2024. With long-term demand for high-quality aircraft and aviation services continuing to grow, U.S. companies have strong prospects in the sector.

Leading Sub-Sectors

Maintenance, Repair and Overhaul (MRO): As China’s commercial airplane fleet expands, demand for MRO services will continue to grow. Boeing’s 2024 Market Outlook projects China’s commercial fleet will more than double by 2043, reaching 9,740 planes. The demand will be driven by the delivery of 8,830 new aircraft, with 60 percent for growth and 40 percent for replacement of older models. Single-aisle jets will dominate, supported by domestic air travel and expanding regional networks. By 2042, Boeing estimates China will need $675 billion in aviation services, including maintenance, repair, training, and spare parts. Components such as wheels, brakes, APUs, and avionics systems will see the fastest growth within the MRO sector.

Ground Support Equipment (GSE): China is investing heavily in airport infrastructure to accommodate increasing air traffic. By the end of 2026, China plans to open multiple new airports, including Dalian Jinzhouwan International, Xiamen Xiang’an International, Foshan Gaoming International, Chongqing Jiangbei International, and Suzhou General, as well as expand Xi’an Airport. These new airports will drive demand for new GSE, including baggage handling systems, aircraft tugs, fueling systems, and passenger boarding bridges. Additionally, China’s emphasis on sustainability, including reducing aviation sector emissions, creates opportunities for U.S. companies providing electric ground support vehicles and energy-efficient technologies. The CAAC’s 2023 launch of a ‘Smart Civil Aviation Construction Evaluation Index System’ further underscores the push for low-carbon airports.

General Aviation (GA): China’s gradual opening of low-altitude airspace as part of Beijing’s push to develop its “low-altitude economy” has created new opportunities in GA, especially for remote areas with limited transportation infrastructure. By 2030, China’s low-altitude economy is expected to reach $274 billion (2 trillion yuan). In 2022, China had 3,186 registered GA aircraft, 661 GA companies, and 399 certified GA airports. Key growth areas include aerial emergency rescue, air medical services, firefighting, agriculture, tourism, and pilot training. This growth is driving demand for aircraft, airports, helicopter landing pads, communication and navigation systems, and maintenance equipment. Additionally, rising demand for pilot training is expanding the market for training aircraft and simulators.  China’s low-altitude economy is the subject of intense and rising government policy support, and there is a risk of discrimination against foreign market entrants given the established presence of numerous indigenous low-altitude economy focused aviation companies.  

Advanced Technologies: U.S. OEM suppliers have strong opportunities in China’s commercial aircraft manufacturing market, particularly in advanced technologies like engine components, composite materials, flight control systems, APUs, and fuel and hydraulic systems. While China aims to develop its own commercial aircraft capabilities, it still lags foreign competitors in several advanced technologies, creating openings for U.S. companies. However, Chinese regulators generally require U.S. aerospace companies to partner with local Chinese manufacturers through joint ventures, particularly with China’s state-owned Commercial Aircraft Corporation (COMAC), which is keen to integrate foreign firms’ advanced technologies into its supply chain.  China’s military-civil fusion (MCF) program and state-driven aerospace industry also present risks for U.S. firms pursuing partnerships with Chinese firms.  China’s established history of IP theft in the aerospace sector, active attempts to exfiltrate U.S. export-controlled technology, and ongoing effort to fully indigenize the aerospace sector, create significant risks for U.S. companies operating in this sector.

Resources 

  • AirExpo Shanghai — June 11-13, 2025
  • China Helicopter Exposition — Tianjin, September 18-21, 2025
  • China (Zhuhai) Airshow — Zhuhai, November 2026