[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]


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DEPARTMENT OF COMMERCE

International Trade Administration


Aerospace Supplier Development Mission to China

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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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

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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

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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