China looks for business opportunities in Dubai Air Show

Dr Mohammed Issam Laaroussi

During the last decade, China has been marketing its top military and civil technology, in terms of cooperation and arms sales to the GCC region. It takes part in the most interesting events and exhibitions organized in the gulf region to promote their new products, such as the international defense exhibition and conference (IDEX), hosted in Abu Dhabi, the Bahrain international naval and maritime exhibition and conference, finally the Dubai Air Show currently taking place. In return, the GCC countries have shown significant interest in purchasing weapons and aviation equipment’s from China. However, China has concluded a limited number of deals with Saudi Arabia, Kuwait and the UAE. China`s total planes purchase agreements signed with GCC countries are insignificant comparing with EU and US ones. 

It’s certain that GCC is seeking to diversify their economic ties and their strategic partnerships with China in accordance with the strategic shifts in the Middle East at large. The US most certainly pivoting out of the region or at least its economic relevance is compromised by other players, among them China. The GCC region, and notably the UAE, is among the most dynamic and fast-growing aviation markets in the world. The airlines and hub airports of the region are reshaping the global competitive pattern of aviation and benefit from a favorable geographic location, highly liberal bilateral air service agreements, and political choices by local governments to invest in aviation as a strategic economic sector. 

Aircraft from Chinese Air Force's August 1st Air Demonstration Team perform during the 15th Dubai Airshow in Dubai, the United Arab Emirates, on Nov. 14, 2017. The 15th Dubai Airshow is held from Nov. 12 to Nov. 16.[Photo: Xinhua]

In this context, China`s presence in Dubai Air Show paves the way to sign comprehensive aviation agreements and aviation safety agreements with GCC countries, particularly Saudi Arabia and UAE. China tries to create new economic opportunities: they ensure market access and promote investment opportunities, facilitate air travel and provide a wider choice for consumers. China aims to increase its sales of planes ensuring, by the way, a high standard of safety, security, air traffic management, infrastructure, consumer, social, and environmental protection, notably through regulatory dialogue and cooperation. 

The most remarkable contribution at the Dubai Air Show 2017 is the two Chinese-developed series of unmanned aerial vehicles, which were the highlight of the event. The series of planes are called “Wing Loong” and “Yanjing”. During the airshow, the full-scale models of the planes were on display to the public for the first time. China has been developing an operation system of unmanned planes. The technologies used in the planes’ aircraft platforms, impetus supply systems, data links, task devices and assault weapons, are all China’s proprietary intellectual property rights. China integrated advanced technologies in one system to meet users’ demands. The unmanned planes showed the development and improvement of china in relevant technologies. 

Airline services between the UAE and China are set to increase following the signing of an agreement by the country's aviation authorities. The UAE's General Civil Aviation Authority (GCAA) has signed in 2013 a record of deals with China, which opens the door to an expansion in airline services. However, two enormous aircraft purchase orders are for both Airbus and Boeing, in one of the most exciting days in recent aviation business history. Airbus revealed its largest single announcement– a US$49.5 billion deal with Indigo Partners to purchase 430 aircraft in its A320 neo family, described as Airbus’ largest ever single announcement. Meanwhile Boeing inked a US$27 billion deal with carrier fly Dubai for 225 aircraft in its 737 Max family, the largest-ever single-aisle jet order – by number of airplanes and total value – from a Middle East carrier.

Certainly, as China gains leverage on the international stage, particularly with its recent Silk Road Initiatives and the Asian Investment Infrastructure Bank (AIIB), Beijing cannot afford to ignore the strategically located and resource-rich Gulf nations. As a vibrant trading and commerce center, the UAE is viewed as an important member of the AIIB. At the same time, the UAE serves as a strategic hub for the realization of Silk Road initiatives.

It is important to note that approximately sixty percent of Beijing’s total trade passes through the UAE, where it is then delivered to Europe and Africa. In line with this argument, China looks to connect with the world under the Belt and Road Initiative. The ties between UAE and China have strengthened based on a foundation of mutual trust and respect. Regular and mutual visits by China’s and UAE leadership have highlighted the importance of Dubai as a gateway for China to the Middle East and Africa. The UAE is also a proud founding member of the China-initiated Asian Infrastructure Investment Bank, which will help to enhance ties and boost the prime economic role played by the UAE regionally and internationally. From this realistic point of view and the geostrategic tremendous changes in the region, China should focus more than usual, to record more air business ‘agreements with GCC countries to concretize Silk Road Initiative.        

(Dr. Mohammed ISSAM LAAROUSSI is a professor of international relations based in United Arab Emirates)