China's civil aviation authorities submitted their restructuring plans for the 10 regional airlines to the Cabinet for approval on Monday, state media reported.

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Another problem is certification: China's civil aviation authority would have to be officially recognised by its American and European counterparts before Chinese aircraft could be exported to America or Europe.

ECONOMIST: Aviation in China

The Civil Aviation Administration of China said the threats appeared to be false.

WSJ: Chinese Airlines Receive Flight Threats

"The civil penalty action against China Aviation Oil Holding Company is a signal to the market that we expect all entities undertaking transactions in this jurisdiction to fully comply with Singapore law, " said monetary authority deputy managing director Shane Tregillis.

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But they also said that China is catching up fast in other areas of civil and military aviation technology, thanks in large part to technology transferred by foreign aerospace companies in Chinese joint ventures.

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