February 29, 2008 -- China is constructing another civil aerospace center in the Shaanxi province this year after the launch of the initial Shanghai base last year a move marking China's effort in stepping up its civil aerospace industrialization. The State Development and Reform Commission approved the planning of Xi'an National Civil Aerospace Industrial Base on December 26, 2007.

According to Huafeng Yue, Xi'an deputy mayorof the National Civil Aerospace Industrial Base of Xi'an, set to cover 23 square km, will focus on developing satellites, new materials, energies, IT and other technologies for the benefit of civil application.

In November 2006, Xi'an and the China Aerospace Science and Technology Corporation jointly set up Xi'an Aerospace Science and Technology Industrial Base. At the very beginning of the establishment of the base, the development of the civil space industry has been its focus.

"The main industries in Xi'an base include equipment manufacturing, software and service outsourcing, new materials and solar photovoltaics," Hongzhuan Zhao, a Xi'an official responsible for the planning of the base revealed in an interview.

"Xi'an base industry planning is consistent with the national strategic overall planning, which lays foundation for the upgrade of Xi'an base to a national base," Zhao added.

"The setting up of national aerospace base in Xi'an, an ancient city renowned for its terracotta warriors, is a firm indicator of China's commitment to boosting the aerospace industry infrastructure beyond major cities," Yue said at a press release.

"Xi'an will give full support to the national base through tax concessions, preferential policy in land use and infrastructure building," Yue added.

In October 2007 China issued a five-year plan for aerospace development, which concentrates its industry strategy on the military and civil integration for business and service application and encourages self-development and international cooperation.

Take satellites for example. The successful launch of China' first Chang-E lunar-landing satellite not only proves China's achievement in aerospace technology, but also indicates that China's satellite application industry has entered a new development stage --- the stage of business applications, according to Laiyan Sun, director of State Aerospace Bureau .

"It's critical to change aerospace technology advantages into aerospace industry advantage, Sun said in an online interview.

As the core of the Yangtze River Delta radiation region, Shanghai National civil aerospace industry base aims to drive regional economic development through market-oriented space industry operation. Xi'an officials expect Xi'an Base to exert greater influence.

"Apart from the core area, the base will cover Xi'an and the Guanzhong area (the central China) and the radiation zone will reach Northwest China and Southwest China," Zhao said in a statement.

"We will strive to build the world's leading civil aerospace base. It is expected that by 2012 the total industry output can reach 2.8 billion us dollars with about 10 to 20 brand products with self-owned intellectual property rights and 5-8 products with strong competitiveness, "Zhao added.

With two aerospace bases located in technology-intensive west China and East China, China is endeavoring to speed up its civil aerospace industry.

"China hope to push the civil aerospace industry further through technology development and application demonstrations in civil satellite communications, satellite navigation, and other areas of civil application," Yaowei Liu, a professor at University of Foreign trade and economics, told Emerging China.

"For enterprises which do not own cutting–edge technology of research and development, the civil aerospace industrialization also means immense opportunities because the industrialization process will greatly stimulate new materials, communications and relevant industries," Liu added