The Times is running a short article today on this weekend’s announcement out of Beijing that the Chinese government is committed to investing upwards of $7 billion to develop a 150-seat commercial jet capable of rivaling those sold by Boeing and Airbus. As the piece notes, the news is particularly vexing for the beleaguered Airbus company which is building an assembly plant in China in order to position itself better in that country.

It’s far too early to tell whether or not the Chinese will succeed in the goal of overtaking their Western competitors. Either way, coupled with their on-going efforts to gain a foothold in the regional air market with the upcoming launch of the ARJ21 (and the concurrent development of the Sukhoi Superjet 100 in Russia) the announcement underscores the significance attached by the communist government to the aerospace industry.

ScP