China Explores Domestic-Built VLJs
China is also predicting a boom in light jets although it seems to want that market to itself. China's First Aircraft Design Institute is examining the feasibility of an indigenously designed and built aircraft but it has to decide whether turboprops or jets will be in greater demand. There's not much current market data available. There are only three privately owned bizjets in all of China, a Beechcraft Premier 1 owned by a chemical company and two Citations owned by an air conditioning company. However, more are reportedly on order and, according to Flight International, a study done by Embraer suggests there's immediate potential for more than 500 sales. However, China doesn't make it easy to buy a private jet. In its study, Embraer notes that foreign competition doesn't stand a chance against any future homegrown jet because China imposes a 23-percent import duty. Foreign companies can, however, set up joint ventures with Chinese concerns to manufacture in China and avoid the tax. Whether that proves financially viable appears to be open to debate.