The aviation industry in China started off in the 1940s as a completely state-owned enterprise, controlled first by the military and then, in the 1980s, under the civilian arm of the government. As the industry grew, government funding for airline and manufacturing projects proved insufficient. In 2002 and 2005, the Civil Aviation Administration of China (CAAC) started to allow foreign investment and then domestic private investment to enter Chinese aviation market. But China's three largest airlines remain state-owned.
Advancement has been made in the airline sector. In order to develop private economy and meet increasing air travel demand and competition from foreign airlines, CAAC opened China's previously state-monopolized aviation sector to foreign investors in 2002. Domestic private investment was allowed to enter the market in 2005.
Civil Aviation Administration of China
China Southern Airlines
Aviation Industry Corporation of China (AVIC)