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“Our customers are not happy about the insufficient awareness among our employees of product quality,” says the report. “This has resulted in mass recall and recycle of our products, incidents of fraud, and omissions of required manufacturing procedures.”

The report also notes that poor quality control and fraud have endangered aviation safety and created excessive toxic waste.

Chengdu produces China’s J-10 fighter jets and the J-20 fifth-generation stealth fighter.

Chengdu also is a key supplier of parts and maintenance services to Western aircraft companies such as Northrop Grumman, Boeing, Airbus and Dassault.

It is the Chinese licensee for McDonnell Douglass’ MD-80 and MD-90 aircraft.

Miles Yu’s column appears Fridays. He can be reached at and @Yu_miles.