Manufacturing

Will emerging markets make or break the aerospace industry? Though the airline industry is suffering across the world, executives from Boeing and Airbus talked up the prospect of future demand from China as one bright spot at this month’s Paris Air Show. And on Tuesday, Airbus will deliver its first China-assembled A320, part of a joint venture that could help the plane-maker take more market share from its American arch-rival.

The Airbus A320, which was assembled at a plant in Tianjin that is 49%-owned by a Chinese consortium, will be delivered to a leasing company and eventually put into service by Sichuan Airlines. Airbus expects to produce a further 10 aircraft in Tianjin this year.

Both Airbus, a subsidiary of European Aeronautic Defense and Space ( EADSF - news - people ), and Boeing expect great things from the Chinese market. Boeing ( BA - news - people ) has forecast that China will become the largest aviation market outside the United States by 2028, with the mainland set to require 3,700 additional aircraft in that time. Airbus last year estimated a slightly lower figure, closer to 2,800, and is still hoping to increase its market share to 50% in the next few years, from the mid-30s.

The problem is that for now, China’s airlines have not been spared the recession’s blow to the region’s export-driven economies. The International Air Transport Association expects Asian carriers to lose $3.3 billion this year--which would be the world’s worst regional performance--and there is even talk of mergers among China’s unprofitable airlines to cope with overcapacity.

It’s an obvious disconnect, but not one that will last, according to Doug McVitie, managing director of consultancy firm Arran Aerospace. He says that once the global economy recovers, China’s incredible aviation growth prospects will put the West to shame. "China will be a huge economic player nationally and internationally instead of just being a major export player," he says, adding that this will directly feed through into increased transport network links and a rise in economically-active Chinese.

China is even plotting to roll out its first domestically-produced jumbo jet by 2015, after taking a more humble first step with the ARJ-21 regional jet. (See "Asia's Aviation Upstarts.") Analysts are skeptical as to whether the finished product will be convincing enough to rival established players, but EADS chief executive Louis Gallois told Forbes at the Paris Air Show that the industry should take seriously the efforts of the Chinese to enter the plane-building market.

As for whether growing demand for aircraft from China will benefit Airbus or Boeing, it might at first glance seem that Airbus’ presence in Tianjin would help its chances, especially at a time of protectionist sentiment in China. (See "The ‘Buy Chinese’ Trade Dispute.") But McVitie thinks that Boeing--currently the market leader in China--will benefit from China’s more strategic approach, which is designed to strengthen trade links with a wide array of partners and to avoid heavily favoring one plane manufacturer over another.

Greatwall's Hover M1 will run into market with 2WD and 4WD versions in Auguest this year. This model is called the smallest SUV which debut on 07 Shanghai autoshow, and took part in 09 Shanghai autoshow.

Hover M1 is based on Greatwall's Jingling platform, 3569mm×1611mm×1595mm in dimension. QQ-like design with SUV power brings makes it become the cutest SUV.

1.3 L engine empowers this SUV 65KW output, its Max-speed can reach 160Km/h, 5-level manual transmission, the most attractive point is its real-time 4WD. Security is getting more and more attantions in China, Greatwall integrates ABS+EBD Bosch8.1 with Siemens airbag and 4 wheel disk breaks.

Frankly speaking, Hover M1 is more than a Crossover instead of SUV, its smaller than SX4 and Brilliance Cross, but that does not means it can never be sold well, as a car designed for China's Car Subsidy Program for Rural Areas, it may goes far.

China's steel companies refuse to accept the iron ore price cut reached between Rio Tinto and Japan's Nippon Steel Corp., the China Iron and Steel Association (CISA) said Sunday.

The price cut failed to reflect the real supply and demand situation on the international market and would lead to overall losses for Chinese steel companies, the CISA said in a statement on its website.

Anglo-Australian iron ore giant Rio Tinto on Tuesday announced it had agreed a price cut of between 33 percent and 44 percent with the Nippon Steel.

"This does not represent the mutually-beneficial relationship between steel producers and iron ore suppliers," said the CISA statement. "Chinese steel companies will not accept or follow the price cut."

The CISA has insisted that the iron ore price should fall back to 2007 levels, which meant a price cut of more than 40 percent in the annual contracts of iron ore.

CISA officials were not available for comment Sunday.

The Purchasing Managers' Index (PMI) of China's manufacturing sector stood at 53.1 percent in May, the China Federation of Logistics and Purchasing (CFLP) said Monday.

The figure was down 0.4 percentage points from a month ago.

It was the third consecutive month the PMI was above 50 percent since July 2008, when the index fell to 48.4 percent.

A reading of above 50 suggests expansion, while one below 50 indicates contraction.

The PMI includes a package of indices that measure economic performance. The survey, jointly conducted by the National Bureau of Statistics, covers purchasing and supply managers of more than 700 manufacturers across China.

The output index was 56.9 percent, down from 57.4 percent in April. The new order index fell to 56.2 percent from 56.6 percent.

The purchasing price index was up 1.8 percentage points to 53.1percent.

"The continuous stay of above 50 shows the third largest economy continued on its way to recovery, and a slight drop is a normal adjustment," said Zhang Liqun, a researcher with the Development Research Center of the State Council.

He added investment and consumption had kept growing, which helped trigger economic activities and the economy would continue to see expansion.