China’s COMAC Seeks to Enter Saudi Aviation Market

A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
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China’s COMAC Seeks to Enter Saudi Aviation Market

A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)
A model of a Chinese-made COMAC (C919) aircraft at the company’s pavilion at the Future Aviation Forum in Riyadh. (Photo: Turky Al-Agili)

Chinese aircraft manufacturer COMAC, which launched its first international flights in February, expressed its desire to enter the Saudi aviation market and contribute to supporting the country’s ambition to be a global aviation hub.

COMAC Chairman He Dongfeng stressed that the COMAC cargo aircraft can connect Saudi Arabia with markets in the region, as well as in North Africa and neighboring Asian countries.

Speaking during a panel discussion, “A special conversation with the Commercial Aircraft Company about future growth plans and current trends,” on the second day of the Future Aviation Forum, he said that the Chinese government-owned company is working according to a comprehensive three-year strategy that aims to reduce carbon emissions.

COMAC, which was established in 2008, launched its first ever commercial flights during the month of May 2023, and then announced its intention to produce 150 C919 aircraft annually within five years, adding that it has already obtained more than 1,200 orders from local companies.

The C919 aircraft carries less than 200 passengers, and is the first locally manufactured passenger aircraft of this size. The Chinese company said that it began developing the airplane 15 years ago, to compete with the narrow-body Airbus A320neo and Boeing 737 aircraft.

COMAC began its first production lines at a time when the two giants of the aircraft industry, Boeing and Airbus, are facing challenges related to meeting the delivery of aircraft on time, and others related to the shortage of supplies of engines and semiconductors.



China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
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China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer

China's industrial profits fell at a slower clip in November, official data showed on Friday, but the annual decline in earnings this year is expected to be the worst in over two decades due to persistently soft domestic consumption.

The world's second-largest economy has been struggling to mount a strong post-pandemic revival, as business and household appetites for spending and investment remain subdued amid a prolonged housing downturn and fresh trade risks from the incoming US administration of President-elect Donald Trump.

Industrial profits fell 7.3% in November from the same month last year, following a 10% drop in October, National Bureau of Statistics (NBS) data showed, Reuters reported.

The narrower decline in November pointed to improved profits as recent economic stimulus measures start to have an effect, said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

The profit numbers were also in line with a slower decline in factory-gate prices in November. The producer price index fell 2.5% year-on-year versus the 2.9% drop in October.

The World Bank on Thursday revised up its 2024 economic growth forecast for China slightly to 4.9% from its June forecast of 4.8%.

Still, in the first 11 months of 2024, industrial profits declined 4.7%, deepening a 4.3% slide in the January-October period, reflecting still tepid private demand in the Chinese economy.

China's full-year industrial profits are set to show their biggest drop in percentage terms since 2011. However, when smaller companies are included under a previous compilation methodology, this year's profit decline is expected to the worst since at least 2000.

A spate of economic indicators released this month pointed to mixed results, with industrial output accelerating in November while new home prices fell at the slowest pace in 17 months.

The industrial sector is undergoing an uneven recovery amid insufficient demand, Zhou said, pointing to difficulties facing real estate and some related industries as evidence of this malaise.

China's leaders vowed in a key policy meeting this month to raise the deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate. The government also recently pledged to step up direct fiscal support to consumers and boosting social security.

Beijing has agreed to issue a record $411 billion special treasury bonds next year, Reuters reported.

Profits at state-owned firms fell 8.4% in the first 11 months, foreign firms posted a 0.8% decline and private-sector companies recorded a 1% fall, according to a breakdown of the NBS data.

Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.7 million) from their main operations.