Evolution of China's air transport development and policy towards international liberalization

Abstract

This article describes current developments in China's air transport sector, which has improved greatly since the economic reforms launched in the 1970s. But it is hampered by restrictions still in place on international carriers. The government regulatory body in charge of air transport is starting the process of de-regulating the domestic industry by restructuring it into three groups centered around Air China, China Eastern Airlines and China Southern Airlines. With its entry into the World Trade Organization in 2001, China has also committed to opening its markets in the areas of agriculture, industry and services, which should create opportunities in air transport. It analyzes the factors shaping China's current and future air transport industry and identifies some areas where more immediate liberalization can be carried out.

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