On July 1, the Shanghai Municipal Commission of Economy and Informatization, in collaboration with seven other local government departments, issued a document to encourage the development of the industrial chain for large civil aircraft.

The document, titled “Shanghai’s Several Measures to Support the Development of the High-End Industrial Chain for Large Civil Aircraft and Promote the Construction of a World-Class Civil Aviation Industrial Cluster,” comes into effect immediately and will remain in force until December 31, 2026.

Here are the key highlights from the document:

I. Overall goals

- Leverage Shanghai's existing strengths in the large aircraft industrial chain to attract and nurture key enterprises and projects;

- Aim to develop a world-class civil aviation industrial cluster, with a significant increase in domestic large aircraft production capacity by 2026;

- Plan to introduce and cultivate over 60 key high-end enterprises within the civil aircraft industrial chain by 2026, supporting around 150 local suppliers and partners, with an additional investment of over 70 billion yuan and an industrial scale of approximately 80 billion yuan.

II. Development focus for the industrial chain

1. Subchain of major structural components and composite materials

Focus on promoting projects to be located in the large aircraft park to ensure seamless support for aircraft assembly. This includes major structural components such as the nose, fuselage, and wings, as well as interior products like seats, luggage compartments, and wall panels. Additionally, it emphasizes the development of composite materials, including prepreg and parts.

2. Subchain of onboard systems

Focus on developing onboard systems, subsystems, and key products, such as flight control, avionics, hydraulics, environmental control, power supply, auxiliary power units, fuel, and landing gear. Enhance the R&D, testing, and integration capabilities of onboard systems to accelerate certification and installation processes.

3. Engine subchain

Promote the R&D, manufacturing, and system integration of raw materials, forged and cast parts, components, core parts, subsystems, and nacelles for civil aviation engines. Accelerate the construction of a batch production support system that integrates green design, intelligent manufacturing, and maintenance support.

4. Subchain of manufacturing equipment

Focus on the R&D and manufacturing of composite material processing equipment, testing and inspection equipment, intelligent assembly lines, and new tooling equipment. Master advanced manufacturing technologies and processes for large aircraft components to collaboratively enhance batch production efficiency.

III. Main policy measures

1. Supporting collaborative R&D

Encourage enterprises to participate in the large aircraft industry by supporting collaborative research and development efforts. Provide financial assistance for joint R&D, testing, and trial production activities between supporting enterprises and industry leaders. This support can cover up to 30 percent of the approved total project investment, with a maximum of 100 million yuan per project.

2. Supporting airworthiness certification of components

Incentivize enterprises that obtain Parts Manufacturer Approval (PMA) from the Civil Aviation Administration of China. Offer rewards of up to 500,000 yuan per certificate, with a cumulative maximum of 5 million yuan per enterprise. For enterprises obtaining Technical Standard Order Authorization (CTSOA) or Supplemental Type Certificates (STC), provide rewards of up to 2 million yuan per certificate, with a cumulative maximum of 10 million yuan per enterprise.

3. Supporting installation of certified products

Streamline the inclusion of certified products in the supply chain directory for large civil aircraft batch production. For the first product or product sets that meet the required criteria, provide funding support of up to 30 percent of the approved contract order amount, with a maximum of 20 million yuan per product.

4. Supporting upgrade of manufacturing enterprises

Offer financial support of up to 10 percent of the approved total investment for equipment and software purchases, with a maximum of 100 million yuan per project. Alternatively, provide interest subsidies on actual interest incurred by project loans or financing leases, capped at 15 million yuan per enterprise. Allocate a maximum of 10 million yuan per factory for upgrading of intelligent factories.

5. Providing investment credit support for supporting enterprises

Extend interest subsidies ranging from 20 percent to 50 percent of the approved interest payments on bank loans for eligible supporting enterprises engaged in scientific research, production, operation, and project construction. The support is capped at 15 million yuan per enterprise annually.

6. Supporting construction of collaborative innovation platforms

Promote the establishment of innovation platforms, such as labs by industry leaders in collaboration with upstream and downstream enterprises, universities, and research institutes. Support the development of common service platforms for pilot testing and inspection. For approved projects, provide funding support of up to 20 percent of the previous year's R&D investment, with a maximum of 10 million yuan per platform annually.

7. Strengthening talent acquisition

Encourage enterprises to attract high-level talent domestically and internationally, and integrate them into city talent programs like the Oriental Scholar Program in Shanghai.

8. Proactive construction of standard factory buildings

Accelerate the construction of standard factory buildings in phases to meet the requirements of enterprises in the large aircraft park. For companies involved in key product development, offer rent subsidies of up to 80 percent for the first three years upon evaluation, with a maximum support amount of 3 million yuan per enterprise per year.

Source: Shanghai Municipal Commission of Economy and Informatization