Haven't heard that one but here is a bit of "official" news for you:
. .Beijing, Feb. 6 (Bloomberg) -- Empresa Brasileira de Aeronautica SA is in talks with AVIC II to assemble 30- to 70-seat aircraft, make parts and transfer technology to China, where as many as 700 such planes may be needed in the next two decades.
The Chinese government "will open the market in exchange for technology,'' Tracy Chen, executive assistant to Embraer's chief representative in China, said. "That's their final goal.''
Embraer, the No. 4 aircraft maker, along with rivals Bombardier Corp. of Canada and Germany's Fairchild Dornier, have been told by the Chinese government that further sales in China are contingent on their cooperation with domestic aerospace companies to fulfill a national plan to build an indigenous aviation industry over then next five years.
Winning the role as AVIC II's partner may unfreeze a backlog of 30 regional jets worth about $500 million ordered from the Brazilian manufacturer by China's airlines. Local assembly may also allow Embraer to avoid import and value-added taxes, which add a combined 23 percent to the cost of planes.
A report in Brazil's Valor Economico newspaper yesterday said the company may build an assembly plant in China, citing Embraer President Mauricio Botelho.
Embraer may choose to build airplanes with Hafei Aviation Industry Co., which signed an agreement last year to produce wing fairings with Fairchild Dornier. The fairings are used to reduce a plane's aerodynamic resistance.
Last month Fairchild Dornier official Gong Jian said he expects the government's decision on which foreign manufacturer will be chosen to work with AVIC II to be made in March.
Last September, AVIC I, another company spun off from the former Aviation Industries of China, said it plans to spend 5 billion yuan ($604 million) to build 70-seat passenger planes.
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