Airbus investing in Chinese firm that supplies Myanmar military: report

A new report from Burmese activist groups is calling on French-based airline manufacturer Airbus to use its influence with Aviation Industry Corporation of China, or AVIC, to pressure the Chinese firm to end its arms sales to the Myanmar junta.
AVIC is one of the world’s biggest defense contractors, and the Chinese aviation firm supplies aircraft and weapons to Myanmar’s military junta that are being used in airstrikes in the war-torn country.
The report, which was released Monday, says Airbus has not only maintained but increased investment in companies controlled by the Chinese firm.
According to the report, Airbus is “heavily” invested in AVIC’s Hong Kong-listed holding company, AviChina, a strategic partner of AVIC China.
An Airbus spokesperson denies allegations that the company could be in violation of international sanctions.
In its report titled #AIRBUSTED How Airbus’ close partner AVIC is supplying arms to the Myanmar military and what Airbus should do about it, Justice for Myanmar, and Info Birmanie, a non-profit organization in Paris that focuses on Myanmar, say they have uncovered evidence that AVIC is continuing to supply aircraft and weapons to the Myanmar military, which they say have been used to commit war crimes throughout the country.
The report’s authors have called on Airbus to “use its leverage over AVIC and its subsidiaries so they halt all ongoing and planned transfers of military aircraft, arms and associated equipment to the Myanmar military,” as well as maintenance, training and technical support for the country’s air force.
“Because of these known risks, Airbus should conduct heightened due diligence on any current and future partnerships with AVIC and its subsidiaries and make that due diligence public,” the report said.
The report also called on Airbus to divest and end its relationship with AVIC if the company refuses to end its relationship and all business with Myanmar’s military.
Philippe Gmerek, a spokesperson for Airbus, told VOA in an email that the French airline manufacturer is compliant with sanctions on Myanmar and within international law with its relationship with AVIC.
“Airbus has not supplied defence products to Myanmar or its armed forces. Airbus is committed to conducting its business ethically and in compliance with all applicable laws and regulations. This includes the delivery of defence products in accordance with export control laws and in full transparency and alignment with authorities and relevant stakeholders,” Gmerek said in the emailed statement.
He added that “Airbus’ relationship with Chinese companies, including AVIC, is fully compliant with all European and international laws and regulations, notably with regards to the existing arms embargo on China. As such, Airbus’ industrial and technology partnerships in China are exclusively focused on civil aerospace and services.”
AVIC, one of the world’s largest military contractors, has been under U.S. sanctions since 2020 and is listed by Washington as a potential national security threat because of its links to the Chinese military. Those sanctions prohibit any American organization or individuals from dealing with firms that have links to the Chinese PLA.
Myanmar has been in chaos since military leader General Min Aung Hlaing and his military forces overthrew the democratically elected government in February 2021.
The coup sparked widespread armed resistance to military rule, led by ethnic armed groups and forces loyal to a civilian-led shadow government. Upwards of 5,600 people have been killed by the military and millions displaced since the coup, according to rights groups.
In a joint statement at the U.N. Security Council in February, France joined Britain, Ecuador, Japan, Malta, South Korea, Slovenia, Switzerland and the United States in strongly condemning the military’s violent attacks on civilians in Myanmar, including its “continued use of indiscriminate airstrikes.”
The governments of France, Germany and Spain all hold major shares in Airbus through holding companies.
VOA reached out to Christian Lechervy, France’s ambassador to Myanmar, and AVIC for comment but has yet to receive a reply.
Johanna Chardonnieras, coordinator for Info Burmie, said the French government, among others, should act.
“The French, Spanish and German governments have a responsibility and a duty to act when Airbus’ partner and investee is linked to war crimes,” Chardonnieras said. “Today they have the opportunity to show their capacity for action, in line with their statements, values and sanctions.”
Yadanar Maung, the Justice for Myanmar spokesperson, called for the U.S. to take action should Airbus continue its business ties with AVIC.
“We call on the U.S. government to conduct due diligence on any business activities and links it currently has with Airbus and encourage U.S. citizens and entities to do the same. Airbus’ decision to continue its business relationship with AviChina should be subject to consequences, including restricting market opportunities in the U.S.,” she told VOA.
Zachary Abuza, a professor at the National War College in Washington who focuses on Southeast Asia politics and security, says the report could tarnish Airbus’ reputation, though it is unclear how much of an impact it could have beyond that.
“Airbus will obviously try to make the case that they only partner with AVIC in the commercial aircraft, but obviously there’s a lot of dual use technology,” Abuza said.
“The biggest hit to the firm is reputational damage. I am not sure Myanmar is a large enough issue, or it’s a priority for European leaders, or there’s a significant and politically powerful diaspora to demand changes,” he told VOA.
The U.S., Canada, Britain and the EU have all imposed a variety of sanctions on Myanmar’s military regime and its entities in recent years in a bid to end its violent crackdown.