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Extra resources for China and the Global Economy: National Champions, Industrial Policy and the Big Business Revolution

Example text

Sanjiu’s response to the central government’s policy announcement of July 1998 concerning PLA-run businesses, was that this would benefit the Company’s long-term development. Sanjiu believes that as one of the largest and most effective PLA-owned business, with a powerful management team, it will be able to take over weaker and smaller competitors in the period ahead. It anticipates that there will be a regrouping of the PLA’s businesses, and it is likely that it will be in a strong position to take over many of the PLA’s companies in the near future.

When questioned closely about their reason for staying with the firm, they answered that it is to a considerable degree because of their sense of involvement with an exciting endeavour which they have helped create under Zhao’s leadership. His personal influence on the firm is transparent. He is a powerful personality, talking with great clarity about the firm’s strategy. All leading cadres speak of him with great respect, recognizing the key role he played in the firm’s successful growth and modernization.

Large investments had been made in the MD-90 programme. A great deal of energy had been put into the AE-100 project. Both programmes had substantially raised the industry’s hopes. The double blow of the end of both the programmes left the industry reeling. Its development strategy of ‘three stage take-off’ was in tatters. The coincidence of the double blow was China’s Ambitions: Building the ‘National Team’ remarkable. Many people in the Chinese aircraft industry felt that it had been let down not only by Boeing and Airbus, but also by CAAC, which had refused to order either the MD-90 or the planned AE-100.

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