General Aviation Market Intelligence

Regulations and Policies – China GA Report 2021

by Global Sky Team

Regulations and Policies – China GA Report 2021

China’s general aviation (GA) development is supported by related policies. The country’s 14th Five-Year Plan (2021 to 2025) will help light a path regarding the industry’s development. According to the guidance of 14th Five-Year Plan, the industry’s future goal is to develop and pinpoint consumer groups, stimulate growth and internal need, showcase the benefits of convenient air travel, nurture internal economic circulation, develop potential of Low Altitude Airspace Economy, and change the industry to focus more on quality instead of quantity. Local governments and other departments in various provinces have also successively released policies and guidelines to promote the growth of GA from every angle.

With regards to Finance, it is worth noting the “Hainan Free Trade Port “Zero-Tariff” Raw and Auxiliary Materials List” and the “Notice on the Measures for the Administration of Tax Policies for Supporting the Import of Aviation Equipment Used for Civil Aviation Maintenance from 2021 to 2030”. The policies mention that listed components which are used to repair planes operated by aviation companies based in Hainan or those that have entered China from abroad for maintenance and later leave will be exempted from import duties, value-added tax (VAT), and consumption tax. At the same time, the notice also states civil aircraft design and manufacturing companies, domestic airlines, maintenance organizations, and aviation equipment distributors which import aviation maintenance equipment that cannot be produced in China or whose quality is not up to par, are to be exempted from import tariffs. The policy implementation marks another breakthrough regarding China’s tax support for civil aviation.

According to industry standards, the “Notice on Strengthening the Management of Experienced Flight Safety Operations” issued by the Flight Standards Department of the Civil Aviation Administration has drummed up extensive discussion. The focus was on the ‘Notice’ that “Only aircraft that hold a standard Airworthiness certificate can provide flight experience services.” As Light-Sport Aircraft (LSA) are restricted, the planes cannot be allowed to provide flight experience services. As such, this policy will impact the development of hundreds of aircraft design, manufacturing and operations businesses.

All local governments have proactively responded to the country’s 14th Five Year Plan; Anhui, Henan, Fujian, Shenzhen, and the Hong Kong SAR have also issued corresponding policies that are already showing results. Worth noting is that Hunan has already become China’s leading low-altitude pilot province, with the opening of airspace to 3,000 meters. We believe Hunan province will accumulate experience in fields like aviation communication monitoring, low-altitude supervision, and management which will further prove the feasibility of opening up whole low-altitude airspace nationwide.

Tags

Policies Regulations

Market Intelligence + See All