Evolution of China's Air Transport Development and Policy towards International Liberalization

摘要

This article discusses the evolution of China's air transport development and policy towards international liberalization. Air transport has improved tremendously since China embarked on its economic reform in the late 1970s. However, its restrictive approach to international capacity supply has resulted in limited air traffic rights. There are at least four factors influencing China's conservative approach towards international air transport: (1) protection of its noncompetitive airlines, (2) low income and restrictive policy on its citizens traveling abroad, (3) constraints in its infrastructure, especially the limited capacity in domestic airports, and (4) lack of human capital and management with international experience. Strategies to overcome these problems are identified. Furthermore, regional open-skies blocs are proposed and evaluated.