British industrial conglomerate Rolls-Royce said while geopolitical tensions present challenges, it remains steadfast in its commitment to the China market.

China has been an important ecosystem for the company, and it is confident in the country's future innovation capabilities. Across its different business divisions, Rolls-Royce has more than 50 suppliers in China that support civil and power system businesses, and they have delivered parts for both global and local businesses.

Operating in China — its third-largest single country market — for over 60 years, Rolls-Royce said it has adapted to a very resilient and prudent strategy in China, and it enabled a balanced and globally competitive environment.

"For us, China is not only a market, but also an important part of our supply chain. The industry we are in is highly globalized and China is key to driving business growth. We believe in the long-term potential of the Chinese market, and are dedicated to driving growth within the region," said Troy Wang, executive vice-president of Rolls-Royce Greater China.

"Chinese suppliers have been a crucial part for us and they are becoming a lot more capable, supplying more complex parts, with very good quality. Our supply chain in the country is resilient," added Wang.

Currently, Rolls-Royce is building Beijing Aero Engine Services Co Ltd (BAESL), its joint venture with Air China in Beijing, into a world-leading digitally-enabled aero engine repair and overhaul shop.

The facility will become operational at the end of this year, and it will support customers in China and other markets, and Rolls-Royce sees growing demand for after-sales services of jet engines in China.

Over the next 20 years, Chinese carriers are expected to acquire 9,520 new aircraft to meet expanding commercial air travel demand, according to a forecast by European aircraft manufacturer Airbus late last year.

For BAESL, Rolls-Royce has been cooperating with local Chinese digital firms to build the entire digital capability, with future vision to build artificial intelligence-enabled inspections and an internet of things-connected factory.

"The joint venture that we are building with Air China demonstrates a simple fact that it is in China, for China and for the globe. China's focus on innovation-driven growth is making it continue to be an important country for Rolls-Royce, and it is so much more than just a market for us," Wang said.

Last year, Rolls-Royce achieved a record year in terms of business performance and it is confident about 2025.

Meanwhile, the International Air Transport Association released data for global passenger demand in February. Total demand, measured in revenue passenger kilometers, grew 2.6 percent year-on-year.

"February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April," said Willie Walsh, IATA's director general.