*Sources: DTN News / Taipei Times / AP
*The DPP’s Chai Trong-rong raised fears of security leaks if a firm that is involved in Taiwan’s air defense were to cooperate with a Chinese company By Rich Chang ~ Taipei Times
(NSI News Source Info) TAIPEI, Taiwan - June 23, 2009: The Democratic Progressive Party (DPP) caucus yesterday criticized the government-owned Aerospace Industrial Development Corporation’s (AIDC) proposal to co-produce commercial aircraft with a Chinese aviation company. 
The Republic of China Air Force's AIDC F-CK-1 Ching-kuo is a light fighter aircraft named after the late ROC President Chiang Ching-kuo. It entered active service in 1994, and 131 production aircraft had been manufactured by 1999.
Although named and commonly known as the Indigenous Defence Fighter (IDF), the project was a joint effort between Republic of China and United States defense companies, with final assembly by the Aerospace Industrial Development Corporation (AIDC) (based in Taichung, Taiwan, Republic of China). The IDF program was initiated when purchase of the US -built F-20 Tigershark ran into political problems.*
The AIDC yesterday confirmed it had proposed cooperating with China Commercial Aircraft Co to co-assemble commercial airplanes.
The Republic of China Air Force's AIDC F-CK-1 Ching-kuo is a light fighter aircraft named after the late ROC President Chiang Ching-kuo. It entered active service in 1994, and 131 production aircraft had been manufactured by 1999.
Although named and commonly known as the Indigenous Defence Fighter (IDF), the project was a joint effort between Republic of China and United States defense companies, with final assembly by the Aerospace Industrial Development Corporation (AIDC) (based in Taichung, Taiwan, Republic of China). The IDF program was initiated when purchase of the US -built F-20 Tigershark ran into political problems.*
The AIDC yesterday confirmed it had proposed cooperating with China Commercial Aircraft Co to co-assemble commercial airplanes.“The AIDC receives 80 percent of its business from the military, and has been a very important player in the domestic arms industry. China is an enemy of Taiwan. How can a domestic company responsible for developing Taiwan’s air defense technology cooperate with the enemy?” DPP Legislator Chai Trong-rong (蔡同榮) said at a press conference yesterday.
There was a strong chance military secrets would end up being leaked through the cooperation, he said.Chai said because President Ma Ying-jeou (馬英九) is leaning toward China and neglecting national security, it made sense that the US has hesitated to sell advanced arms to Taiwan as it has concerns that advanced technology could end up in Chinese hands.
Chai said Ma should stop jeopardizing Taiwan’s national security.
AIDC spokesman Lee Shih-chang (李適彰) confirmed a news report that the AIDC had proposed co-production of civilian aircraft with the Chinese company under the Ministry of Economic Affairs’ direction.He said the company was well prepared to make sure military technology would not be leaked to China.
The AIDC and China Commercial Aircraft plan to complete production of their first commercial airplane by 2014.
The Taiwanese company said when thinking about cross-strait aviation exchange, the assembly of civil aircraft and parts production management were two areas worth considering.
The AIDC had said that while the civil aviation market in Taiwan was rather limited because of the size of the nation, the market had nearly been destroyed since the launch of the Taiwan High Speed Rail Corp.
The AIDC was founded in 1969 under the authority of the Air Force. In 1996 the company was transformed from a military entity into a government-owned company under the authority of the Ministry of Economic Affairs.The company produced Taiwan’s Indigenous Defense Fighter.
*Related Info ~ DTN News: Taiwanese Defense Company Seeks China Deal ~ Source: AP
The producer of a strategically important Taiwanese jet fighter said Monday it was discussing a deal on commercial aircraft manufacture with a Chinese company, despite concern from the island's military.
Li Shih-chang of the government-held Aerospace Industrial Development Corporation told The Associated Press his company met with China's state-owned Commercial Aircraft Corporation during the Shanghai air show in May.
"We are still talking about a possible concept for commercial aircraft, but there has not been a deal yet," Li said. "We will not give up on any possible business opportunity."
AIDC made Taiwan's Indigenous Defense Fighter jets on a now discontinued production line, and remains responsible for IDF maintenance.
Li's statement comes amid steadily improving ties between Taiwan and the mainland. Since coming into office 13 months ago, President Ma Ying-jeou has jettisoned his predecessor's pro-independence policies, in favor of much greater political and economic engagement with China.
Ministry of Defense spokesman Yu Sy-tue questioned the wisdom of any deal between AIDC and the Chinese company.
"Of course we have some concerns, " he said. "But we do not have the power to interfere with their commercial aircraft deals."
Li said his company would be able to keep confidential military information out of Chinese hands. "We have worked with nine countries and 16 companies and we have the experience to keep secrets from leaking," he said.
Taiwan and China split amid civil war in 1949. Beijing continues to claim the island of its territory, and threatens to attack if Taiwan makes the break permanent.
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