2021 China General Aviation Report

REGULATIONS AND POLICIES
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.
26 | CHINA GA REPORT 2021