The collapse of Beijing Skyrizon Aviation’s acquisition of Ukrainian aero-engine manufacturer Motor Sich has been the focus of attention recently.
According to reports, Ukraine’s National Security and Defense Council announced on March 11 that it would nationalize Motor Sich. It is widely believed that this is the ultimate means by which the Ukrainian authorities are trying to prevent the acquisition of Madasich by Chinese investors.
Tianjiao Airlines, whose parent company is Beijing Xinwei Technology Group (Xinwei Group, A-share stock code *ST Xinwei), actively acquired a stake in Madasic in 2017.
According to Xinwei Group’s announcement on February 2, 2021, the company judged that the sanctions order imposed by the Ukrainian government on January 29, 2021 was related to Tianjiao Aviation’s acquisition of the Xizhi franchise and was consistent with the purpose of the January 14, 2021 action by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to place Tianjiao on the Military End User (MEU) list.
In its January 15, 2021 “Public Statement on Inclusion in the U.S. Government’s Military End-User List,” Tianjiao Aviation called the addition of the company to the U.S. Department of Commerce’s MEU list and the reasons for its inclusion “baseless accusations and unjustified actions.
The Science and Technology Daily, sponsored by the Ministry of Science and Technology of the Communist Party of China (CPC), published a front-page story on June 2, 2017, titled “Citation: Sino-Russian Joint R&D Enters Substantial Operational Phase, Main Topic: Which Engine to Use for C929 Wide-Body Airliner,” in which the only expert interviewed was Wang Guangqiu, vice president of Beijing Tianjiao Innovation Research Institute.
According to Wang Guangqiu’s analysis at the Time, there are a number of engine candidates, in addition to the General Genx, Rolls-Royce Trent 1000 and Trent XWB, three other international brands, respectively, China Commercial Development (CAADC Commercial Aero Engine Company) in the development of the CJ2000, China-Ukraine new generation of aero engine AI-38, and Russia plans to develop the PD-35.
Wang Guangqiu at the time, CJ2000, PD-35 need 10 years of development time, this time node to catch the C929 first train is more difficult. (According to the currently available published schedule, the C929 first flight is expected to 2025-2028).
Wang Guangqiu said at the time that the AI-38 was developed jointly by Tianjiao Aviation and Ukraine’s Progress Design Bureau and Madasic on the basis of the Ukrainian D-18T engine. The large turbofan engine developed in Ukraine has the same three-rotor structure as Rollo’s Trent series engines and features high efficiency, small size and light weight. Wang Guangqiu stressed that the latest news (then interviewed on May 31, 2017) was that the joint China-Ukraine engine manufacturing base in Chongqing had started installing a test stand. The implication is that the AI-38 is better able to catch the first train of the C929 compared to the CJ-2000 and PD-35.
At that time in the domestic military forum, there were military people estimated that: test flights and the initial stage of commercial operation is the Rollo engine, after the maturity of the CJ2000, domestic and Chinese countries and airlines providing preferential loans to use the CJ2000, Russian domestic airlines and airlines in the Russian sphere of influence to use the PD35. engine should be the military version of the C929.
In Sina Military 2018 an article also has a similar analysis, in addition to the civilian market, the military market will also be an important direction for the CR929, according to forecasts will have more than 400 military orders, the largest role of the independent large passenger aircraft C929 is not to compete with Boeing Airbus in the field of civil aviation, but to solve the problem of scarcity of special platforms for the PLA.
In the article “Why China and Russia jointly manufacture the C929” in Daily Headlines Military 2019, it is pointed out that the C919 has many obstacles to military participation (it is called an independent large passenger aircraft, but in fact it is not large and globally procured parts), and it does not have the value of modification or replacement, such as military early warning aircraft, electronic reconnaissance aircraft, anti-submarine patrol aircraft, transport aircraft The C929 is the best aircraft in the plan. The C929 is the best choice in the planning.
Before Trump left office, the U.S. Department of Commerce put SkyJiao Aviation on the list of “military end-users.” If the Chinese military uses the AI38 in military aircraft modified with the C929, can SkyJiao Aviation deny that it is not involved in the “development, production, and maintenance of military goods, including military aircraft engines? “?
Although Tianjiao Airlines said that Ukraine’s sanctions order in January this year was a follow-up to the U.S., in fact, before the anti-monopoly investigation, the Ukrainian security services and the anti-monopoly committee said that they could not obtain the list of Tianjiao Airlines shareholders. Domestic media reported in September 2017, according to the Kiev Post, that a Ukrainian court document stated that a pre-trial investigation had revealed that there were unidentified persons among the ultimate beneficiaries of the companies involved in the acquisition, as well as among the former and current management.
According to publicly available information, Wang Guangqiu, vice president of the Tianjiao Institute of Aviation Innovation, is also an expert in the “Thousand Talents Program” and deputy director of the Commercial Aircraft Technology Research Center of China (Beijing). The parent company of North Research Center is a large central enterprise, Commercial Aircraft Corporation of China Limited (COMAC), which holds 100% of the shares.
In addition, Tianjiao Aviation acquired the most important partner of Madasic, the Ukrainian DCH Group. As Tianjiao Aviation lifted the 25% of the shares of the Ukrainian Defense Industry Agency to DCH Group, there was public opinion that how could DCH Group make Tianjiao Aviation look at it? The actual situation is likely that DCH Group was ordered to enter the game.
On the website of the Ministry of Commerce of the Communist Party of China, you can find a detailed profile of the Ukrainian DCH Group, which is classified as a “foreign organization”. In addition, the profile of DCH Group, the Chinese name of DCH, shows that the wholly-owned parent company is CITIC Pacific, whose parent company is CITIC Corporation, and whose parent company is the large central enterprise CITIC Group.
The article “Xinwei Group Hides Huge Debt” by NetEase Finance in 2016 disclosed that the group’s cash flow dried up at that time, and where did the hundreds of millions of dollars of upfront funds for the subsequent acquisition of Madasic come from? *ST Xinwei is the “A-share nail”, Wang Jing old director has become a “rogue”, how can the National Development Bank accept the high pledge of Wang Jing’s shares?
Tianjiao Airlines has issued a statement that the company is a Chinese private capital, and there is no special background, the acquisition of the equity of Madasic company, but also purely commercial nature of the investment.
Such a statement is reminiscent of the Varyag, which was acquired by the PLA Navy (although it has not been publicly acknowledged so far) through the intervention of Xu Zengping, a Hong Kong businessman and a veteran of the Guangzhou Military Region, and in 2015 the South China Morning Post reported in its article “Hong Kong businessman’s secret purchase of Varyag aircraft carrier revealed ” reported that Xu Zengping’s company in Kiev told the Ukrainian government that he planned to convert the aircraft carrier into the world’s largest maritime casino hotel after learning that it could not be used for military purposes after the sale. Some netizens sometimes commented: What do you need drawings for a maritime casino? Are all Ukrainians stupid?