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Trade - Editor, 30 June 2008

Why Even Boeing Cannot Dismiss China Business, Trade, or Competition



Editor
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China seems to follow the Wright brothers. They have just invested $2.7 billion to start the Commercial Aircraft Corporation of China Limited. The Chinese ambition to build large jets dates back to the 1980s. The government has shown rare perseverance in this matter. China has not been successful in this field in the past.

Why should China succeed this time? Boeing must think that it will work. Company executives have attended the company inauguration. They have joined other top U.S. names from the aerospace industry in this pioneering venture. Airbus already has an assembly line ready in China.

Why should we care about this?

1. No other country can match China in terms of demands for new commercial aircraft.
2. China welcomes foreign technology and participation in its industrial efforts.
3. Commercial aircraft need support services that support thousands of enterprises.
4. The Shaanxi Province, where the new Chinese company will be based, is already a major world hub for many aviation service suppliers.
5. A successful regional aircraft manufacturer and all Chinese airlines have been involved in the concept of the new corporation.

Everything from ground support to maintenance and spares is part of a modern commercial aircraft. China accepts that it cannot compete with the established manufacturers of the world overnight. However, even Boeing, accustomed to life in duopoly, has seen the writing on the wall. Have you thought of how your enterprise can benefit from this visionary initiative of China?

Trade

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