US House bill seeks to reopen review of Chinese ownership of Cirrus Aircraft

A bill introduced in the US House of Representatives would require federal officials to review past acquisitions of American general aviation companies by entities from China and other countries of concern, a move aimed at opening the possibility of a forced divestiture of Cirrus Aircraft.

Republican Representatives Pat Harrigan of North Carolina and Ryan Mackenzie of Pennsylvania offered public details the General Aviation Protection Act, or GAP Act, on July 16, 2026.

The legislation, designated H.R. 9707, would expand the authority of the Committee on Foreign Investment in the United States, known as CFIUS, to examine foreign investment in aircraft manufacturers, engine producers, avionics companies and some flight-training organizations.

Although the bill would apply broadly, Harrigan singled out Cirrus Aircraft when announcing it.

Cirrus was acquired in 2011 by China Aviation Industry General Aircraft (CAIGA), a subsidiary of the state-owned Aviation Industry Corporation of China (AVIC). Cirrus remains controlled by CAIGA and AVIC following the aircraft manufacturer’s partial listing on the Hong Kong Stock Exchange in 2024.

“Walk into any regional airport in this country and you’ll see a Cirrus on the tarmac, sleek, American-made, flying the flag,” Harrigan said. “What you won’t see is that the company building it has been owned by China’s state-controlled AVIC since 2011.”

The bill would require CFIUS to conduct a comprehensive review of previously completed transactions in which a person or company from a country of concern acquired a covered US general aviation business.

The review would have to begin within 180 days of the bill becoming law.

For each transaction, CFIUS would determine whether any existing national-security agreements or other safeguards remain adequate and whether subsequent developments justify reopening the case.

The committee would then submit a classified report to Congress identifying the transactions reviewed and any action taken or recommended, including possible divestiture under the Defense Production Act.

The legislation would therefore not directly order AVIC or CAIGA to sell Cirrus. It would require a new federal review that could result in a recommendation for divestiture.

The bill follows the US Department of Defense’s decision in June 2026 to add Cirrus and its controlling companies to a list of entities identified as Chinese military companies operating in the United States.

Known as a Section 1260H designation, it does not itself require a change in ownership, but it can limit the ability of the Department of Defense to purchase goods or services from listed companies.

For future deals, the GAP Act would make CFIUS filings mandatory when an investor from a country of concern seeks to acquire certain aviation businesses.

The covered companies would include FAA production certificate holders that manufacture aircraft, engines or propellers; developers of general aviation avionics and flight-control systems; certain helicopter and light-rotorcraft certificate holders; and some Part 141 pilot schools and Part 142 training centers located within 50 nautical miles of a military installation.

The bill would create a presumption that an acquisition should be prohibited when the buyer is controlled by a country of concern, has significant foreign-government ownership or appears on certain US government restricted-entity lists.

A buyer could attempt to overcome that presumption by providing evidence that the transaction would not transfer technology, manufacturing knowledge, FAA certification data or engineering talent to a country of concern.

Other provisions would require federal reviews of aviation technologies with potential military applications, including composite airframes, piston and small turboprop engines, integrated avionics, autopilots and fly-by-wire flight control systems.

The legislation would also direct the FAA, Department of Defense and Cybersecurity and Infrastructure Security Agency to audit avionics, flight controls and engine-control systems produced or maintained by covered foreign-controlled aviation companies.

The audits would examine whether those systems contain unauthorized hardware, firmware or software capable of allowing remote access, extracting data or interfering with aircraft operations. If such a component were found, the FAA could require inspection, modification or replacement through an airworthiness directive.

The bill would also restrict federal loans, grants and contracts for covered aviation businesses controlled by entities from countries of concern and require companies to disclose foreign owners holding at least a 5% interest in certain FAA and federal funding filings.

Harrigan’s office said Chinese entities have completed more than 20 acquisitions, investments or joint ventures involving American general aviation companies since 2005.

AVIC subsidiaries agreed in June 2026 to sell Continental Aerospace Technologies to US private equity firm Arcline Investment Management for approximately $535 million. The transaction remains subject to closing conditions and would return the piston-engine manufacturer to US ownership.

Fot it to become law, the GAP Act would need to pass both chambers of Congress and be signed by the president before its requirements take effect.The post US House bill seeks to reopen review of Chinese ownership of Cirrus Aircraft appeared first on AeroTime.

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