18 Dec 2025
#3 December 2025: China Aviation Industry Newsletter
CAAC and GE Aerospace Mark 45 Years of Cooperation
The Civil Aviation Administration of China (CAAC) and GE Aerospace held a high-level bilateral meeting in Shanghai on 10 December, led by CAAC Deputy Administrator Hu Zhenjiang and Russell Stokes, President and CEO of GE Aerospace Commercial Engines and Services. Both sides reaffirmed their long-standing partnership, which spans more than 45 years and has evolved alongside the modernisation of China’s civil aviation sector. Discussions focused on strengthening engine operational safety, ensuring supply chain stability, supporting China’s civil aircraft programmes, and establishing a regular communication mechanism to enhance long-term cooperation. GE Aerospace’s deep involvement in China’s aviation ecosystem continues to position it as a key partner in the country’s fleet growth and engine support landscape.
CAAM and CRRG International Investment Form Aviation Aftermarket Alliance
China Aviation Aftermarket Holdings (CAAM), an associate company of China Aircraft Leasing Group (CALC), has entered into a strategic cooperation agreement with China Resources Recycling Group International Investment (Shenzhen). The partnership aims to jointly develop comprehensive aviation aftermarket solutions and marks CAAM’s first collaboration with CRRG International Investment. Under the agreement, both parties will work across bonded component management, transparent aircraft acquisition processes, and compliance-driven parts solutions. The alliance lays the foundation for long-term cooperation as China continues to formalise and scale its aviation aftermarket infrastructure.
Rolls-Royce Opens BAESL Trent Engine MRO Facility in China
Rolls-Royce has officially opened Beijing Aero Engine Services Limited (BAESL), its new joint-venture MRO facility with Air China. Located in Beijing, BAESL becomes the first dedicated Trent engine overhaul facility on the Chinese mainland, significantly expanding Rolls-Royce’s global MRO footprint. The facility addresses growing demand driven by increasing widebody flying hours, fleet upgrades, and new aircraft deliveries. Rolls-Royce currently powers more than 500 commercial aircraft in China, with nearly 20% of its global Trent engines delivered to the market. The BAESL opening forms part of Rolls-Royce’s broader plan to materially expand global Trent MRO capacity by 2030.
Acumen’s Take
On CAAC–GE Aerospace Cooperation
The renewed commitment between CAAC and GE Aerospace highlights the strategic importance of engine OEM partnerships in supporting China’s expanding fleet. Regularised dialogue and supply chain coordination will be critical as engine utilisation rises and next-generation aircraft enter service.
On the CAAM–CRRG Aftermarket Partnership
This alliance signals increasing institutional focus on formalising China’s aviation aftermarket ecosystem. Transparent acquisition processes and compliant parts management will be essential as aircraft retirements and asset trading activity accelerate in the coming years.
On Rolls-Royce’s BAESL MRO Expansion
The opening of BAESL reinforces China’s role as a core Trent engine market and reflects a broader shift toward localisation of heavy maintenance. Expanding in-country MRO capacity enhances resilience while positioning Rolls-Royce to capture long-term aftermarket value as widebody fleets mature.
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