Wary of Chinese Intent

Wary of Chinese Intent: "

In one of his first moves as representative of Minnesota's 8^th District, freshman Congressman Chip Cravaack asked the federal government to block the recently announced plan by China's Aviation Industry General Aircraft Co. (AVIC) to purchase Cirrus Industries, which makes the SR20 and SR22 four-place aircraft.

Cravaack says he's concerned the acquisition 'would compromise America's national security,' citing three 'dual-use technologies' associated with Cirrus: 1. Carbon composite materials fabrication; the Williams International FJ33 turbofan; and its full-authority digital equipment control (FADEC.) In addition, he's concerned about the solid-fuel rocket used in the ballistic parachute system fitted to Cirrus aircraft.

Specifically, he's worried that the carbon composites could be used in Chinese military aircraft, and that the Williams engine and FADEC could advance the Chinese cruise missile and UAV capability. The rocket fuel worry is self-evident.

The concerns, which we forwarded by Cravaack to Treasury Secretary Timothy Geithner as lead member of the Committee on Foreign Investment in the U.S. (CFIUS), left the management at Cirrus perplexed (and probably miffed as well) for several reasons.

First, the airframes of their airplanes are not made of carbon fiber composites, but rather fiberglass -- the same stuff used in motorboats for years. The three carbon fiber parts in their airplanes are made by a vendor. Second, the Williams engine and FADEC come from Williams, not Cirrus. And more importantly, Cirrus doesn't make an airplane propelled by any turbofan engine. Someday they hope to make a baby bizjet, but that's still years away. And as for the rocket propellant, that's made by a two-man subsidiary they acquired a couple of years ago, and now plan to offload to ease the sale to China.

They've explained all this to Rep. Cravaack, of course, but he's unimpressed. Moreover, he's concerned that the Cirrus production and jobs could ship out to China, a possibility that Cirrus management insists would make no economic sense.

Actually, the economy took a toll on most of the jobs before Cravaack took office. Four years ago Cirrus employed some 1400 workers who turned out 720 aircraft annually. They're down to some 490 employees now and hope to produce 280 airplanes by year end.

One other footnote to the sale to foreign interests -- Cirrus has been owned by Middle Eastern investors for the past decade.

And one last footnote regarding politics. Rep. Cravaack, a pilot, unexpectedly unseated long-time Congressman James Oberstar last fall. Oberstar, who helped bring the company to Duluth in the 1990s, is being quoted locally as being "really excited" about the sale to China. Perhaps he said too much.

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