CHINA: An Introduction to Aviation: Finance (PRC Firms)

The Road to The Revival of China's Aviation Industry（2024）

中国航空业的复兴之路（2024） 

After three years of the impact of COVID-19, China's economy and society will finally usher in a stage of recovery growth in 2023. In 2023, China's industrial economy, agricultural economy and tertiary economy, which is dominated by the service sector, will see rapid growth. Among them, the performance of China's air tourism industry is particularly striking. The travel frequency has increased significantly, and the consumption stimulus of the golden holiday has given further impetus to the economy to return to normal.

经过持续三年的新冠疫情的冲击，中国经济社会在2023年终于迎来恢复性增长阶段。2023年中国工业经济、农业经济和以服务业为主的第三产业经济均实现了快速增长。其中中国航空旅游经济尤为明显，社会的出行率明显增加，黄金假日的消费刺激进一步为经济恢复常态提供了动力。

However, it is clear that the social problems caused by three consecutive years of economic stagnation have not disappeared, but on the contrary have gradually shown their negative and destructive sides. Numerous small and medium-sized enterprises have been closed or liquidated, leading to bankruptcies and restructuring, particularly in the real estate sector and among private enterprises. Financial instability has become evident and there is high social unemployment, combined with immense pressure on employment.

但是，我们清醒的看到，连续三年的经济停滞导致的社会问题并没有因此而消失，相反逐渐表现出了其负面破坏性。例如大量的中小企业歇业或解散、破产，以及中大型企业尤其房地产业和民营企业出现了破产和破产重整的浪潮，金融安全性压力比较明显，社会失业率比较显著，就业压力偏大。

In 2024, we expect a further revival of the Chinese economy as the new core leadership of the Chinese government has taken office to lead the country's people towards higher quality, more efficient, fairer, more sustainable and safer development. The aviation industry, especially in the areas of aircraft introduction, aircraft leasing and aircraft financing, will see rapid growth.

2024年我们预计中国经济将进一步复兴，因为新一届中国政府核心领导成员已经就任，带领全国人民实现更高质量、更有效率、更加公平、更可持续、更为安全的发展。航空业，尤其是飞机引进、飞机租赁、飞机融资等领域将迎来快速增长。

The Boeing 737 MAX aircraft has also begun to fly again in China. And China's tourism industry is gradually returning to a normal trade order with the world, which together provides a solid foundation for the revitalisation of the aviation industry. China’s private aircraft industry will also usher in a historic opportunity for restructuring.

波音737MAX飞机在中国也已经开始复飞。中国的旅游业逐渐和世界恢复正常交易秩序，这些因素的叠加势必为航空运输业的复兴奠定坚实基础。中国私人飞机产业也将迎来历史性重组的机会。

In the past, China's private aircraft industry was dominated by high-end and long-range business jets, which were the main value pursuits, and the mainstream goal is to facilitate transactions and operations. After the influence of various factors in recent years, the rational use of business jets has gradually become a social consensus.

过去中国的私人飞机产业是以高端远程公务机为主要价值追求并促进交易和运营。经过最近几年的各种因素影响，目前理智使用公务机已经逐渐成为社会共识。

A large number of high-end remote private aircraft are gradually being disposed of and will be replaced by a huge amount of efficient private aircraft with medium and short ranges and low overall prices, providing China's affluent and working population with product choices in terms of travel, and also promoting innovative development in the aircraft manufacturing industry, aircraft operation industry, aircraft financing services and aircraft models for common ownership.

大量高端远程私人飞机已经在逐渐被处置，取而代之的将是大量中短程、低总价的效率型私人飞机走上历史舞台，这为中国社会财富人群和职业人士提供了出行的产品选择，也会推动飞机制造业、飞机运营业和飞机融资服务、共有产权飞机模式的创新发展。

Restoring the aviation industry to the existing model of rational consumption and steady investment is undoubtedly of great significance to building a robust market economy and society with a good business environment that conforms to business ethics and is in line with global rules.

让航空经济恢复到既有的理智消费和稳健的投资模式上来，这对于建设一个拥有良好营商环境、遵守商业道德、与世界规则接轨的健全市场经济社会，无疑具有重要意义。

Senior Partner of Beijing DHH Law Firm 

Dr. Huang Zhenda 

北京德和衡律师事务所 

黄振达 博士高级合伙人