China considers cut in parts tariffs to aid local-built jets

China is discussing a plan to cut tariffs on plane parts imported for domestically developed commercial aircraft, a person familiar with the matter said, a move that may also benefit suppliers such as General Electric and Honeywell International. The Finance Ministry proposal, being reviewed by the State Council, could win approval in a few weeks, the person said, asking not to be identified discussing confidential policy matters. At present, import tariffs on aviation components are as high as 1.5% for most-favoured nations, and 11% for others. The step would help cut costs for state-owned Commercial Aircraft Corp. of China Ltd., which last year carried out the maiden test flight of the nation’s first home-built, single-aisle passenger jet -- the C919. The Shanghai-based company, which has already started delivering a smaller regional jet to domestic airlines, is also in the process of developing a wide-body aircraft, named the CR929, in collaboration with Russia. China will need 7,690 new planes worth $1.2t over the next 20 years, according to Boeing, with the world’s No. 2 economy poised to surpass the US as the biggest aviation market early next decade.<br/>