Airbus expands A321 assembly in China with AVIC, prepares mega-deal. Technical, strategic, industrial, and commercial analysis.
Airbus’ expansion in China: an industrial turning point
Airbus recently signed a new agreement with AVIC Xi’an Aircraft Industry Group to further localize A321 production in China. This project involves installing key components on the forward and rear fuselage sections directly in Tianjin, prior to final assembly on site. The launch is part of a strategy of local industrialization and enhanced integration of the Airbus value chain in China.
The signing of this agreement precedes a high-level summit between China and the European Union. According to some observers, Airbus could announce a “mega-deal” worth tens of billions of dollars at this meeting. The objective is clear: to assert a stronger industrial presence in the Chinese market while securing future orders.
Technical details: fuselage equipment in Tianjin
The process of equipping the fuselage sections takes place in several precise stages. The front and rear sections arrive at the port of Tianjin in early July and are then transferred to the AVIC XAT factory, where teams will inspect them, install insulation and supports, and install the electrical, electronic, flight control, hydraulic, and oxygen supply systems. This work must be completed in approximately 50 working days, with delivery to the Airbus final assembly plant in Tianjin scheduled for October.
These operations are not simply about assembly: they require specific technical skills and high industrial rates. The project marks an unprecedented milestone: the A321 becomes the first model in the family to benefit from this outfitting phase in China, after the A320.
The strategic and industrial context
Since 2008, Airbus has had a final assembly line (FAL) in Tianjin, the first outside Europe for the A320 family. This site has already delivered more than 600 aircraft in previous years ([Airbus][5]). The ramp-up of the A321 at this site responds to growing demand for this model, which is both more cost-effective per seat and more competitive on regional long-haul routes.
Since 2024, nearly 40% of A320 aircraft delivered from Tianjin have been A321s, reflecting Asian demand for this extended-fuselage model. The current project extends the agreement signed at the 2024 Airshow China in Zhuhai, formalizing the extension of industrial cooperation to the A321.
Benefits for Airbus and China
For Airbus
- Control of production costs: increased localization reduces logistics and transport costs for sections between Europe and China.
- Privileged access to the Chinese market: local investment creates a competitive advantage in a strategic, fast-growing market.
- Increased industrial flexibility: the ability to equip sections in China before final assembly offers greater flexibility in response to fluctuations in global demand.
For China
- Strengthening the aerospace ecosystem: AVIC XAT is increasing its expertise in international single-aisle aircraft.
- Increased technological skills: equipping critical equipment on advanced models of the A320 Family strengthens the local value chain.
- Geopolitical advantage: this type of long-term cooperation consolidates economic ties with European industry and promotes further technology transfers.
Impact on the global aviation market
From a commercial standpoint, this development should be viewed in the context of potential massive orders in China. Bloomberg reports that major Chinese airlines are in the process of allocating a mega-deal for 500 Airbus aircraft, which is still awaiting finalization. A stronger local presence gives Airbus technical and industrial credibility in these negotiations.
Overall, this increases competitiveness with Boeing, which is still in talks with China for potentially comparable agreements ([KOMO][10]). Thanks to its assembly lines around the world—in Toulouse, Hamburg, Mobile (United States), and Tianjin—Airbus can now offer local service and shorter lead times on its single-aisle models.
Long-term strategic consequences
- Strengthening the supply chain
The use of local partners for fuselage equipment illustrates Airbus’s overall strategy: a more resilient, decentralized supply chain that is adapted to local markets. - Securing orders
Greater technological involvement fosters a sense of lasting partnership in China, a decisive factor in the conclusion of mega-deals in the aerospace sector. - Industrial ripple effect
The skills acquired by AVIC XAT can benefit other programs, including civil and military ones, and even future joint venture projects. - Geostrategic reinforcement
By consolidating its operations in China, Airbus is playing a role in the industrial balance between the EU and China, aligning economic interests with a logic of enhanced technological cooperation.
An industrial future with greater synergies
With this initiative, Airbus is completing a journey that began more than ten years ago, moving from simple assembly to true industrial co-production. The relocation of A321 fuselage equipment to China represents a significant change in the organization of global supply chains. The approach aims to combine industrial efficiency, commercial responsiveness, and strategic cooperation.
These efforts are paving the way for a future in which the European aircraft manufacturer is banking on resilience and local partnerships to remain competitive against American competition and other emerging markets.
War Wings Daily is an independant magazine.