China is telling its aviation sector to stop taking delivery of Boeing planes. This is a very significant move, hitting at the belly of the USA technological sector.
Why is China doing this and what makes China so confident of its attempt to ditch reliance on Boeing? With the EU now pivoting towards China, Airbus will undoubtedly be salivating this move by China. Things are really taking a sharp turn especially over as important a sector as aviation. China is a big market for Boeing, with 25% of its business supplying planes to China aviation sector. This is going to be a big loss for Boeing.
Domestically, China is selling its own planes to its own airlines operating inside China. Airbus will be needed to cater to the global sector, for the time being.
In anticipation of Trump going after China in the maritime sector with levies being on the cards on Chinese built ships, would China be considering doing a levy on Boeing planes landing on Chinese airports in retaliation. How many airlines do not have Boeing planes on its fleet? China has many cards to play with to counter the USA.
In passing, I was wondering why the Russians are not leveraging on its aviation sector as the Russians have the expertise and numerous plane makers who are able to build their own planes and fighter jets. Brazil is another country that has an aviation sector but playing a minor role in global aviation. This is their time to grow, with China giving a helping hand in orders.
Anonymous
2 comments:
Remember China was the first country that grounded the Boeing 737 after two successive crashes end 2018 and early 2019 and other countries subsequently followed. China moving away from Boeing planes may also elicit a following from other countries.
China knows what goes on inside those Boeing planes that could be unsafe to say the least, in the face of rumors about 'kill switches' in its fighter jets and the mystery of Malaysia flight MH370. Of course, denials are expected, but as they say, there is no smoke without fire.
Jiang Zemin bought a Boeing plane for his presidential use years ago, only to discover that it was filled with bugs. That plane has never been used again. The USA lost the chance to listen in to top Chinese secrets for sure.
MH370 and a Boeing belonging to a Chinese airliner went out of control and nosedived, killing everyone in the plane were likely to be caused by the activation of kill switches. The SQ flight that crashed in Palembang could also be a victim of failure of avionics or kill switch incident. The Korean aircraft that crashed recently likely to have same problem but conveniently blamed bird strike. The aircraft landed safely but the undercarriage refused to come down was the cause of the accident.
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