If American aviation workers are worried about losing their jobs to China, "that means they have no self-confidence," said Cao Jingnan. "China has its advantages, and America has its advantages."
Jobs, technology, the changes of history -- in a society that respects its elders, Cao Jingnan and Wu Song are wise men. Cao, 67, is a retired engineer with AVIC II. He began his career in Chinese aviation in 1961, and now consults with the government of the People's Republic on general aviation. At 47, Wu is considerably younger. But he holds an esteemed position as the executive vice-president of the Chinese Society of Aeronautics and Astronautics, which advises the PRC on aviation policy.
And their message is simple: invest more in aviation development.
Part of why China's aviation technology lags behind the West's they maintain, is because the government is too reliant on foreign capital, rather than using its own to build its own industry. They contrast aviation with China's space or nuclear-power programs. Because China knows it will never gain foreign funding for those areas due to security concerns, it develops its own resources and moves ahead. Aviation is different -- there, the government is hoping the West will trade technology for lower costs. But it doesn't always work that way.
The conversation was a reminder of how, more than 25 years into modernization and with all the Western companies and free-market practices China is embracing, state policy remains the key determinant of Chinese development. But the roots run deep. China's aviation companies are still ultimately state-run. and almost all innovations are only a generation old -- commercial aviation in any meaningful sense didn't exist until 1978 -- almost halfway through Cao's career.
Cao doesn't miss the old days -- modernization allowed him to leave the government bureaucracy for a less secure, but ultimately more lucrative, future in the semi-private sector. Before Deng Xiaoping and '78, he said, a Shanghai watch cost two to three months' wages. Now it's a fraction of that. For him, someone who found success, he can buy much more than a watch -- a cell phone, a computer, his own apartment, all are possible when they weren't before.
"I thought of buying a car, but I'm getting too old to drive," he said.
Both he and Wu argued that the West needs to be more open to giving China access to technology, which would allow it to do more aircraft tasks. The argument is the mirror of what you'll hear from a Western executive, except the Westerner will use it to justify outsourcing: If you're more open toward (outsourcing/technology acquisition), you'll build cheaper planes, generate more sales, and create more jobs for everyone. The argument can be debated (and is, hotly), but that's the argument.
Wu expressed hope the governments of China and other countries could come to agreements that address both issues.
"China and the U.S. have been allies in the past," Wu said. "Our governments have their differences, but the Chinese people want to be friends."
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