European aviation giant Airbus has withdrawn its shareholdings in a Chinese military-owned company that supplies fighter aircraft and weapons to the Myanmar junta, according to reports.
Airbus held a 5.03 percent share—worth US$140 million as of June 30, 2024—as the sole international investor in AviChina Industry & Technology (AviChina), a subsidiary of the Hong Kong-registered Aviation Industry Corporation of China (AVIC).
Advocacy group Justice For Myanmar (JFM) announced on June 19 that Airbus began withdrawing from AviChina on April 1 after coming under pressure from domestic and international organisations over the Chinese company’s role in enabling the Myanmar junta’s daily airstrikes and killings since seizing power.
Asked about the sale of its holdings in AviChina, as stated in its March 31 quarterly financial report, a spokesperson for Airbus said via email that the company no longer has any investments in AviChina.
“The investment withdrawal sends a clear message that there will be financial and reputational costs for AVIC and the Chinese government, who continue to sell and supply military aircraft and related weapons to the Myanmar military,” JFM spokesperson Yadanar Maung said in a statement.
However, she added that China remains the primary supplier of military weapons, military-civilian dual-use technology, and training to the Myanmar military.
The Myanmar military uses AviChina’s K8-type training and light attack aircraft and Y-12 multipurpose aircraft in aerial attacks that routinely result in civilian casualties.
An official with the Blood Money Campaign Myanmar, which aims to cut off money flows to the junta, said Airbus’s withdrawal from AviChina is a blow to the Chinese government, which is profiting from the sale of its aircraft and other equipment to the regime.
“Due to this withdrawal, AVIC will lose profits gained through Airbus investments and technology. Another thing is that this serves as evidence that dignified human society does not accept the war crimes and crimes against humanity being committed by the terrorist military,” said the official, who asked to be identified only as “Mike”.
He said this serves as a warning to other international businesses collaborating with the Myanmar military.
According to data released by Enemy Air Route, a group that monitors military aviation activity in Myanmar, the junta has continued to make heavy use of its AVIC-made aircraft since the country experienced a 7.7-magnitude earthquake on March 28.
Soe Moe Aung, founder of the S&C Assistance Group, which helps internally displaced persons in Sagaing Region, told Myanmar Now that comprehensive sanctions are needed to stop the junta’s aerial attacks. He added that ground-based air defence programs also need to be implemented.
“It is important to be able to carry out air defence and also to be able to block aircraft fuel. If we can do those things, aerial threats will be reduced. What we can do now for air defence is building underground rooms for schools and clinics to withstand aircraft bombings,” he said.
A complaint was filed with the Organisation for Economic Co-operation and Development in April of this year calling for an end to investments in Chinese companies linked to the Myanmar military.
Before that complaint, JFM and Info Birmanie released a report in 2024 stating that Airbus was connected to the Myanmar junta’s airstrikes. That report triggered protests against Airbus in Myanmar and London.
