Rolls-Royce remains committed to the Chinese market despite geopolitical tensions, viewing China as a vital ecosystem for innovation and business growth. The British industrial conglomerate has cultivated a resilient and prudent strategy in China over the past 60 years, adapting to create a balanced and globally competitive environment. China is not only a key market for Rolls-Royce, serving as its third-largest single country market, but also an integral part of its supply chain.

Troy Wang, executive vice-president of Rolls-Royce Greater China, emphasized the importance of Chinese suppliers, noting that they are becoming increasingly capable of providing complex parts with excellent quality. Rolls-Royce collaborates with over 50 suppliers in China across its civil and power system businesses, supporting both global and local operations. The company believes in the long-term potential of the Chinese market and is dedicated to driving growth within the region.

Rolls-Royce is currently developing Beijing Aero Engine Services Co Ltd (BAESL), a joint venture with Air China, into a world-leading, digitally-enabled aero engine repair and overhaul shop. Expected to be operational by the end of the year, the facility will support customers in China and other markets, addressing the growing demand for jet engine after-sales services in China. The company is partnering with local Chinese digital firms to build the digital capabilities for BAESL, with plans to incorporate artificial intelligence-enabled inspections and an internet of things-connected factory.

According to Airbus, Chinese carriers are projected to acquire 9,520 new aircraft over the next 20 years to meet the increasing demand for commercial air travel. Rolls-Royce sees the joint venture with Air China as a testament to its commitment to China and the global market. The company views China's focus on innovation-driven growth as a crucial factor in its continued importance to Rolls-Royce.

Rolls-Royce reported a record year in business performance last year and remains optimistic about 2025. The International Air Transport Association (IATA) reported a 2.6 percent year-on-year increase in global passenger demand in February, with total demand reaching an all-time high. Willie Walsh, IATA's director general, noted that the number of scheduled flights is expected to continue increasing in March and April.