With 17.4 billion yuan to acquire the Chengfei Group, which can build J-20 and has an output value of more than 100 billion, whoever dares to say this sentence will probably be considered crazy.
But in 2023, according to the news released by AVIC, it really used 17.4 billion yuan to achieve 100% control of Chengfei Group, while the market value of AVIC is only 6 billion yuan.
What is the difference between Chinese and American military industrial enterprises? Is it another foreign acquisition of Chinese capital, similar to Wanda's situation?
The American military-industrial complex sucks the world of blood
The Russian-Ukrainian war has been going on for almost 3 years, and a steady stream of military orders have drifted from Ukraine to the United States, and even large enterprises in Ukraine have almost fallen into the hands of the United States, but the economic problems in the United States, especially the U.S. debt crisis, have not been alleviated in the slightest.
It has never been Biden and his White House team that have really made money, but it has been the US military-industrial complex that has been sucking blood all over the world.
During World War II, the U.S. economy was tied to the military, and most of the country's most powerful companies became defense contractors.
After making a fortune in World War II, the military-industrial complex sucked up blood during the Cold War and became a scourge that is difficult to shake.
Sixty-three years ago, former US President Dwight D. Eisenhower warned the world that "the military-industrial complex could have catastrophic consequences."
But no one paid attention to his statement, perhaps the US military-industrial complex at this time had become a climate and could not be easily eliminated.
After that, lobbying, military spending, weapons, war, and the military-industrial complex coerced the US political arena and fanned the flames around the world, counting the Iran-Iraq war, the Afghanistan war, the previous Palestinian-Israeli conflicts, and even the current Russia-Ukraine war, every incident that undermined peace was inseparable from them.
The war is the result of the happy perception of the US military-industrial complex, like a monster wreaking havoc across the globe, including the military-industrial giants Lockheed Martin, Boeing, Raytheon, General Dynamics, and Northrop Grumman.
According to a 2023 report by Guangming.com, in a factory of Lockheed Martin in southern Arkansas, USA, welders and assemblers who produce the "Hippocampus" multiple launch rocket system are working intensively, and they don't seem to be worried about not receiving orders at all.
Indeed, due to the impact of the epidemic, the economies of countries around the world have been impacted, and even Chinese hospitals have seen a wave of salary cuts, while the United States military orders are still soft.
In China, on the other hand, the state has a close relationship with the military industry, and orders are also driven by the state finance, and production is also aimed at protecting national defense.
Chengdu Aircraft Industry Co., Ltd., a subsidiary of China Aviation Group, has been engaged in R&D, manufacturing and export since its establishment in 1958.
J-5, J-7, J-10, Thunder and other series of aircraft are all from the hands of Chengfei, and the famous J-20 stealth fighter is also manufactured by Chengfei.
There are also large passenger aircraft C919, new regional airliner ARJ21, and large amphibious aircraft AG600 nose, all of which are also involved in Chengfei.
It can be said that Chengfei Group is a high-quality enterprise in the mainland and has a pivotal position.
Why was such a vital company acquired by a mere 17.4 billion?
Chengfei Group: The epitome of China's military industry
The merger and acquisition of Chengfei Group has nothing to do with foreign capital. Founded in December 2002, AVIC has been listed on the Shenzhen Stock Exchange, mainly involving military aerospace products, and more in the field of unmanned aerial vehicles.
Compared with Chengfei, AVIC has been established for a long time, business capabilities and business scope, but it is also part of China Aviation Group.
In other words, these two companies are subsidiaries of China Aviation Group, and the acquisition of Chengfei Group by AVIC is equivalent to putting assets and technology from the left hand of a large group to the right hand, and it is still a family.
The reason for this is most likely to be a backdoor listing and break the dilemma.
The military-industrial complex of the United States is uncontrollable, and the military-industrial enterprises on the mainland lack vitality; relying solely on the state's military orders and the state's financial allocation, first, the funds invested in research and development are insufficient, and the research and development efforts are insufficient; Second, it has fallen into a bottleneck, and the core technology has been unable to break through.
The best way for enterprises to get rid of inertia and get out of their comfort zone is to make a profit, and it happens that AVIC has also made achievements in the aerospace field, but unlike Chengfei, the connection between the two may be able to collide with new sparks.
It is believed that Chengfei will be able to bring good news in the near future, and its success will also provide a template for other military enterprises on the mainland, and it will get better and better in the future.
Resources:
Securities Times: AVIC plans to acquire Chengfei Group for 17.4 billion yuan
https://www.toutiao.com/article/7316658756560028212/?channel=&source=search_tab
Guangming.com: "Who is running the country?" is a war machine" - doxxing the US military-industrial complex
https://www.toutiao.com/article/7220166359030858275/?channel=&source=search_tab