Chinese Acquisition of United States Aircraft Manufacturer Facing Possible Department of State Scrutiny

• Author: Van P. Hilderbrand, Jr.

On June 28, 2011, the Minnesota based small aircraft manufacturer, Cirrus, was acquired for a reported $210 million by China’s state-run Chinese Aviation Industry General Aircraft (“CAIGA”).This acquisition has raised questions concerning jurisdiction and China’s ability to gain access to potential U.S. military technology. CAIGA currently manufactures a stealth jet fighter and has come under scrutiny for previously bidding on U.S. defence contracts. Thus, a request for jurisdiction review to the Department of State was initiated just after CAIGA’s purchase of Cirrus.

Cirrus has a line of four-seat turbo prop planes, along with technology for a small jet prototype, the Vision SF50. Cirrus uses Williams International’s FJ33-4A-19 engines on the SF50. It is this engine technology that...