ABSTRACT
This chapter reviews the aviation and air cargo industry on the mainland and in Hong Kong as well as highlight future issues. Air traffic and the aviation industry have grown rapidly in the mainland in the two and a half decades since the nation's open door policy started. Growth first took off in passenger travel and the domestic market. Only in the latter half of the 1990s did cargo growth start to surpass passenger growth. The powers and functions of the civil aviation leviathan Civil Aviation Administration of China (CAAC) were devolved to more specialized entities. The CAAC began to distance itself from management and operations and concentrate on aviation policy. Today's air cargo logistics requires intelligence and the key concept is integration - physical as well as virtual. China has been part of the bilateral system for international aviation.
