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Chinese Aviation Sector Opens Further to Foreigners
Foreign investment will be given wider access to China's fast-growing aviation market, according to an amended industry regulation to be put into effect on Thursday.

Foreign companies will be allowed to invest in all domestic airlines following the new regulation, reports the China Daily on Wednesday. Their shareholding limitation will be lifted to 49 percent from the 35 percent in effect at the moment.

The new foreign investment regulation was co-drafted by the General Administration of Civil Aviation of China (CAAC), the State Development Planning Commission and the Ministry of Foreign Trade and Economic Cooperation, and has been approved by the State Council.

The regulation states for the first time that officials from foreign companies investing in the field can also act as presidents or general managers of the companies or airlines they invest in.

According to the new regulation, the general aviation market is also being opened wider to foreign companies. Except for some sensitive fields that might involve China's defense security, most air services will be open to foreign investors.

(eastday.com August 1, 2002)

Airline Companies Welcome More Foreign Investment
Aviation Market Enjoys Smooth Ride
Overseas Investors to Help Aviation Fly
Chinese Aviation Opens Wider to Foreign Investors
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