Legal Reform Supports Industry Upgrading  

According to Jiang, China’s aviation legal framework has expanded alongside the industry, but judicial expertise has not kept pace with increasingly complex commercial activity. He argues that specialized aviation courts would improve judicial consistency while building expertise in technically demanding areas such as aircraft financing, aviation insurance, manufacturing and cross-border disputes.

His proposal reflects a broader policy trend: institutional capacity is increasingly viewed as an economic asset rather than simply an administrative function. As China’s aviation industry moves into higher-value activities, more predictable legal processes could reduce commercial risk and improve investor confidence.

Preparing for Commercial Expansion  

Jiang links judicial reform directly to China’s strategic priorities, including the commercialization of domestically produced aircraft, the development of the low-altitude economy and the international expansion of Chinese aviation companies.

These sectors generate increasingly sophisticated legal issues involving financing, liability, intellectual property and international contracts. Jiang argues that developing specialized judicial expertise will become essential as Chinese aviation companies compete globally.

For international manufacturers, leasing companies and insurers, these reforms could gradually improve legal transparency while creating a more mature commercial environment. However, implementation will likely differ across regions as specialized institutions develop.

Governance Becomes Part of Competitiveness  

Jiang also argues that market governance has become an equally important policy priority. Following the aviation sector’s return to profitability in 2025, policymakers are shifting attention from recovery toward improving market quality.

He recommends encouraging market-oriented consolidation among leading airlines, strengthening airfare monitoring and improving oversight of ticket sales platforms to reduce excessive competition and support healthier industry economics.

Jiang also notes that international aviation hubs such as London, Singapore and Dubai have strengthened their competitiveness through specialized legal systems. His suggestion that Shanghai pilot dedicated aviation courts reflects China’s broader ambition to improve its role in international aviation governance while supporting the city’s development as a global aviation hub.

What This Means for Business  

• Legal reform is becoming a commercial issue. Companies involved in aircraft manufacturing, leasing, finance and low-altitude aviation should monitor judicial reforms that may reshape dispute resolution.

• Shanghai could become an early policy laboratory. If aviation courts are introduced there first, the city may establish legal practices that influence future national standards.

• Market consolidation is likely to continue. Jiang’s recommendations suggest policymakers increasingly favor stronger, more competitive industry players.

• Regulatory oversight is broadening. Beyond safety, authorities are placing greater emphasis on competition policy, pricing mechanisms and the governance of aviation sales platforms.

Source

https://www.cata.org.cn/portal/content/show-content/23385/xwzx