The renowned British aerospace manufacturer, Rolls-Royce (RR Company), once acted arrogantly towards China, repeatedly rejecting cooperation requests, but now finds itself having to bow down and seek reconciliation.
The phenomenon of "ten years in the east, ten years in the west" once again proves that in the business world, there are no permanent friends, only lasting interests.
The reversal of events seems a bit unusual. Why has this influential company in the global aviation sector suddenly changed its stance and aims to cooperate with China?
When mentioning RR Company, many people do not have a deep understanding of it.
Initially, they focused on luxury car manufacturing, with the famous brand Rolls-Royce being their representative work, before gradually entering the aviation field.
As early as 2005, China intended to cooperate with RR Company, but at that time, the domestic aviation industry was not yet mature, and RR was not very optimistic about China, thus rejecting the cooperation request.
Afterward, China did not stagnate but continued to seek opportunities for cooperation with RR, yet always to no avail.
By 2020, facing multiple crises, RR Company even stated clearly that it would rather close down than cooperate with China.
With the global spread of COVID-19, the aviation industry suffered unprecedented blows, forcing even RR to confront severe survival challenges.
The sharp decrease in air passengers and a sudden drop in orders put the financial status of the company at risk, while China had already been looking for cooperation opportunities.
Despite the rapid development of China's aviation industry, there are still shortcomings in certain key technological areas.
Therefore, China proposed to RR to establish production lines on the mainland and hoped to gain access to its advanced engine manufacturing technology.
Faced with adversity, RR’s attitude began to soften, and on the surface, it was willing to consider cooperation.
However, after discussions, they expressed caution regarding technology transfer, fearing that China would quickly rise as a formidable competitor.
RR's rise is based on its unique core technologies, and Western countries have also expressed concerns about cooperation with China, worried that China's rise could threaten their own strength; thus, the cooperation once again ended without results.
Although China's aviation industry felt disappointed by RR's shortsightedness, it was not significantly affected; instead, it reinforced the belief in "self-reliance."
By the first half of 2020, RR Company faced losses of up to £5.4 billion and had to take urgent measures to address the crisis. These measures included layoffs and asset sales.
RR carried out large-scale layoffs worldwide, with about 9,000 employees leaving, accounting for 17% of the total workforce.
While layoffs could temporarily reduce costs, they severely impacted the company's operational efficiency, leaving remaining employees anxious.
According to global aviation industry statistics, during the pandemic, total losses for airlines exceeded $320 billion, with RR accounting for $20 billion of that.
By 2022, as the global pandemic gradually came under control, the aviation sector began to recover, albeit slowly, and RR Company started to reflect on its decisions.
From initially stating it would rather go bankrupt than cooperate with China to now facing survival challenges, RR had to reconsider its relationship with China.
Meanwhile, the Chinese aviation market was gradually recovering, attracting RR's attention.
They keenly realized that the potential of the Chinese aviation market was enormous, especially given that with the sharp reduction in global air passengers, the addition of over 20 million people daily indicated an increasing demand for aircraft engines.
RR Company predicted that by establishing an aircraft engine maintenance company and production line in China, it could achieve a net profit of over £300 million annually.
Seeing the business opportunity right in front of them, RR decided to stop hesitating and actively sought cooperation with China.
RR began to express goodwill, proposing demands based on win-win cooperation and showing a strong willingness to collaborate.
They were once protective of their core technologies, but now they were willing to share and planned to build factories in China.
This decision shocked the world; they were not only willing to provide efficient maintenance services but also promised technical support to help China enhance its aviation maintenance capabilities.
Additionally, RR expressed a willingness to collaborate with China in the fields of artificial intelligence and new energy, jointly promoting the development of new technologies.
Behind these moves is the recognition of China's vast market potential, especially regarding the jointly developed CR929 long-range wide-body aircraft project.
This project represents both an opportunity and a challenge for RR; participating in it could certainly aid the company's revival.
For RR, cooperating with China is a win-win situation; it can meet its own needs while solidifying its position in the global aviation market.
For China, although RR's current strength has diminished, its advanced technology and rich experience can still support the progress of China's aviation industry, accelerating technological development.
Establishing factories in China not only helps control costs but also alleviates domestic employment pressures, cultivating more aviation professionals and enhancing the overall strength of the industry.
However, while cooperation is beneficial, China must remain vigilant. Independent research and development is the fundamental way to innovate in technology, and core technologies are crucial; they cannot be easily entrusted to others. Caution must also be exercised when dealing with partners to avoid repeating past mistakes.
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