[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Notices]
[Pages 39911-39913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16947]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Aerospace Supplier Development Mission to China
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS) is organizing
an Aerospace Supplier Development Mission to China from November 7-17,
2010.
The 2010 Aerospace Supplier Development Mission to China is being
developed due to a successful similar trade mission to China in 2008
and due to continued requests from many small and medium-sized
enterprises (SMEs) supplying the aviation industry. It is intended to
include representatives from a variety of U.S. aerospace industry
manufacturers and service providers, and it will introduce these
suppliers to end-users and prospective partners whose needs and
capabilities are targeted to each U.S. participant's strengths.
Participating in an official U.S. industry delegation, rather than
traveling to China on their own, will enhance the companies' ability to
secure meetings in China. The mission will include appointments and
briefings in Beijing, Shanghai, Xi'an, and Guangzhou, some of China's
major aerospace industry hubs, as well as participation in Airshow
China in Zhuhai to conclude the mission. The mission participants will
have opportunities to interact extensively with CS China aviation
specialists to discuss industry developments, opportunities, and sales
strategies.
Commercial Setting
The Chinese aerospace sector ranks among the world's most dynamic,
going far beyond the country's massive investment in aircraft (mainland
carriers anticipate reaching 4,000 by 2025). Chinese aerospace
companies have rapidly developed into serious players in the industry's
global value chain. Chinese aerospace firms, including those linked to
U.S. and European ``primes,'' now frequently make their own sourcing
decisions, participate as ``risk sharing partners'' in new airframe and
engine development programs, or take on the role of first-tier
suppliers on Chinese programs.
The evolution of China's aerospace industry is part of a broader
industry trend toward supply chain consolidation and lean
manufacturing. Many traditional Tier 1 supplier responsibilities are
being pushed down the supply chain to second- and third-tier suppliers.
As the larger firms move into aerospace system integration, the lower-
tier suppliers have little choice but to globalize themselves. This
involves supplying China with products and services that might
historically have been provided to U.S. and European suppliers that
have since shifted production. In many cases, once established in
China, the first-tier firms require their supply chain partners to
begin dealing directly with Chinese members of the supply chain. While
extremely challenging for SME suppliers, these new relationships bring
an added benefit--the opportunity for additional sales with other
aerospace companies doing business in China.
China Aviation Industry Corporation I and II (AVIC I and II),
conglomerates of hundreds of companies, control the country's aerospace
industry. Over the years, the main AVIC companies have formed joint-
venture companies with key Western aerospace partners. The larger AVIC
companies also have so-called ``foreign divisions'' engaged in
manufacturing, design and engineering for Western customers on a semi-
autonomous basis.
Mission Goals
The goals of the 2010 Aerospace Supply Chain Development Mission to
China are threefold: (1) To introduce U.S. companies to Chinese joint-
venture groups and Western original equipment manufacturers (OEMs); (2)
to explore supplier opportunities under other aerospace programs
(including Chinese programs and Western programs with Chinese firms
``risk sharing''); and (3) to facilitate an effective U.S. presence at
Airshow China.
Mission Scenario
The mission's first stop is Beijing, home to AVIC's headquarters
and the China National Aero-Technology Import and Export Corporation
(CATIC), AVIC's trading and purchasing division. The second and third
stops are Shanghai and Xi'an, home to Xi'an Aircraft Industry Group and
the Yanliang National Aviation High-Tech Industrial Base. The fourth
stop, Guangzhou, provides the opportunity to focus on Guangzhou
Aircraft Maintenance Engineering Company Limited (GAMECO) as an example
of a maintenance/repair/overhaul operation and a meeting with MTU
Zhuhai.
The mission will conclude in Zhuhai, at the China International
Aviation and Aerospace Exhibition (known as Airshow China), the only
Chinese aerospace exhibition endorsed by the Chinese central
government. The last Airshow China, in 2008, marked the largest ever in
the show's history. It attracted 600 exhibitors from 35 countries,
showcased 58 aircraft including the Airbus A380 and turned out over
90,000 trade visitors along with 200 media units. CS Guangzhou will
provide entry to the trade show and will help facilitate the U.S.
companies' participation in the American Product Literature Center.
Matchmaking efforts will involve coordination with the American
[[Page 39912]]
Chamber of Commerce in China's U.S.-China Aviation Cooperation Program
(ACP), a public/private partnership promoting technical, policy and
commercial cooperation between the two countries' aviation sectors, and
with other relevant groups. CS Guangzhou will help facilitate walk-in
meetings for mission participants with the Chinese exhibitors at the
air show. U.S. participants will be counseled before, during, and after
the mission by U.S. Export Assistance Center trade specialists,
primarily by members of the Aerospace and Defense Technology Team, as
well as participate in the American Product Literature Center at
Airshow China, allowing them to display their company brochures and
materials.
Participation in the Aerospace Supplier Development Mission to
China will include the following:
Pre-travel briefings/webinar on subjects ranging from
Chinese business practices to security;
Pre-scheduled meetings with potential partners,
distributors, end users, or local industry contacts in Beijing,
Shanghai, Xi'an, Guangzhou, and at Airshow China in Zhuhai;
Transportation to airports in Beijing, Shanghai, and
Xi'an;
Coach class airline tickets: Beijing to Shanghai, Shanghai
to Xi'an, Xi'an to Guangzhou;
Bus transportation from Guangzhou to Zhuhai;
One Airshow China entry pass per company representative;
Participation in the American Product Literature Center at
Airshow China;
Participation in industry receptions at Airshow China;
Meetings with CS China aviation industry specialists in
Beijing, Shanghai and Guangzhou;
Proposed Timetable
------------------------------------------------------------------------
------------------------------------------------------------------------
Sunday, Nov 7, 2010, BJ................ --Participants arrive in
Beijing on their own schedule.
--Afternoon briefing at Hotel.
Monday, Nov 8, BJ...................... --Pre-scheduled matchmaking
appointments, focusing on
contacts at AVIC 1 and CATIC.
--Briefing on Civil Aviation
Administration of China (CAAC)
standards and regulations.
--Roundtable with the ACP.
Tuesday, Nov 9, BJ-SH.................. --Meetings with Air China,
AMECO.
--Afternoon flight to Shanghai.
Wednesday, Nov 10, SH.................. --Meetings with Shanghai
Aircraft Manufacturing Co, Ltd
and COMAC.
--AM Tour.
--Industry briefing at CS
Shanghai.
--Meeting at Honeywell China
Aerospace Academy (TBC) OR
Shanghai Pratt & Whitney
Aircraft Engine Maintenance
Co., Ltd.
--Meeting at Boeing Shanghai
Aviation Services Co, Ltd.
Thursday, Nov 11, SH-XA................ --Morning flight to Xi'an,
arrive Yanliang in early
afternoon.
--Visit Yanliang National
Aviation High-Tech Industrial
Base in the afternoon.
Friday, Nov 12, XA..................... --Visits to Xi'an Aircraft
Industry Group.
Saturday, Nov 13, XA................... --Trip to Teracotta Warrior
site; other sightseeing.
Sunday, Nov 14, XA-GZ.................. --Sightseeing cont'd.
--Afternoon flight to
Guangzhou.
Monday, Nov 15, GZ-ZH.................. --Networking breakfast with the
American Chamber of Commerce.
--Meeting with GAMECO's
Procurement Department and
China Southern Airlines'
Procurement Department, with
technical tour of the
facilities.
--Meeting with China Southern
Airlines.
--Bus trip to Zhuhai (approx 2
hours).
Tuesday, Nov 16, ZH.................... --Attend Airshow China opening
ceremonies
--One-on-one appointments and
show visits.
--APLC show.
Wednesday, Nov 17, ZH.................. --Breakfast meeting with Consul
General in Zhuhai.
--One-on-one appointments and
show visits.
4 pm: Mission ends.
------------------------------------------------------------------------
Participation Requirements
All parties interested in participating in the Aerospace Supplier
Development Mission to China must complete and submit an application
for consideration by the Department of Commerce. All applicants will be
evaluated on their ability to meet certain conditions and best satisfy
the selection criteria as outlined below. The mission will open on a
first come first served basis to a minimum of 12 qualified U.S.
companies.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee will be $5,100 per SME (less
than 500 employees) plus $800 per additional company representative; or
$6,000 per large company (more than 500 employees) plus $800 per
additional company representative.
Expenses for lodging, some meals, incidentals, and travel (except
for in-country arrangements previously noted) will be the
responsibility of each mission participant.
Conditions for Participation
An applicant must submit a completed and signed mission
application and supplemental application materials, including adequate
information on the company's products and/or services, primary market
objectives, and goals for participation.
Each applicant must also certify that the products and
services it seeks to export through the mission are either produced in
the United States, or, if not, marketed under the name of a U.S. firm
and have at least fifty-one percent U.S. content.
Selection Criteria for Participation
Selection will be based on the following criteria:
[[Page 39913]]
Suitability of a company's products or services to the
mission's goals.
Consistency of the company's goals and objectives with the
stated scope of the trade mission.
Timeliness of company's signed application and
participation agreement.
Timely and adequate provision of information on company's
products/services and market objectives, in order to facilitate
appropriate matching with potential business partners.
Any partisan political activities (including political
contributions) of an applicant are entirely irrelevant to the selection
process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet Web sites, press releases to general and
trade media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows. Recruitment for the
mission will begin immediately and conclude no later than September 10,
2010. Applications received after that date will be considered only if
space and scheduling constraints permit.
Contacts
ITA Aerospace and Defense Technology Team: Andrew Edlefsen, Las Vegas
U.S. Export Assistance Center, 400 S. 4th St., Ste 250, Las Vegas, NV
89101, Tel: (702) 388-6694/Fax: (702) 388-6469, E-mail:
[email protected].
U.S. Commercial Service in China: Landon Loomis, CS Beijing, 31st
Floor, North Tower, Beijing Kerry Centre, 1 Guang Hua Road, Beijing,
China 100020, Tel: (86-10) 8531-3997, Fax: (8610) 8531-4333, E-mail:
[email protected].
Natalia Susak,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-16947 Filed 7-12-10; 8:45 am]
BILLING CODE 3510-FP-P