Boeing Opens the First 737 Factory in China in the Context of the US-China Commercial War

ZHOUSHAN, China: Boeing Co inaugurated on Saturday its first 737 completion plant in China. This strategic investment aimed to boost the sales of its rival, Airbus, in one of the world's largest travel markets, overshadowed by the trade war between the two countries. .

The largest washing machine manufacturer in the world was also ready to deliver the first of its 737 best-selling vehicles in Zhoushan, about 290 km southeast of Shanghai, to the airline Air China at a ceremony that took place on Saturday companies.

Boeing and Airbus are expanding their presence in China as they compete for orders in the fast-growing aviation market, which is expected to overtake the United States as the world's largest market over the next decade. .

Last year, Boeing invested $ 33 million to take a majority stake in a joint venture with COMAC (Commercial Aircraft Corp., state-owned company), to build the finishing center, which installs interiors and painted colors.

Boeing, based in Chicago, considers itself the leading US exporter and has delivered more than one in four passenger jetliners it built last year to customers in China, where it anticipates a demand for 7,700 new aircraft for worth $ 1.2 trillion US over the next 20 years.

However, the plant's inauguration ceremony was overshadowed by tensions between the United States and China as they engaged in a deadly tariff war. The two largest economies in the world are in a 90-day relaxation to negotiate a trade deal.

"Am I nervous about the situation – yeah, of course – it's a tough environment," said John Bruns, chairman of Boeing China, during a conference call held Saturday to the press.

"We have to stay focused on the long game in China, and in the long run I'm sure we'll get there," he said.

While trade frictions have hurt companies such as US soybean producers and Chinese manufacturers, their impact on Boeing is unclear. American-made aircraft have so far escaped Beijing's tariffs.

Bruns said he remained optimistic about the outcome of the US-China trade talks and described the aviation as a "plus point" in the face of tensions between the two countries.

Asked about the possibility of technology transfer agreements between Boeing and COMAC, Bruns said the plant was intended to install seats, paint vehicles and complete the final delivery of the aircraft.

"It's only part of what we do in the production of aircraft," he said.

Boeing's goal is to eventually reach a target of delivering 100 aircraft per year to Zhoushan, although Mr. Bruns has solved the problem of how quickly he would reach that level and indicated that Boeing does not want to see it. had no intention of extending its work to other types of aircraft.

Boeing also hopes that the plant will relieve pressure in the Seattle area facilities, where it plans to increase the production of its 737 best-selling narrow-body aircraft, but has experienced production difficulties.

(Report by Josh Horwitz, additional report by Brenda Goh to SHANGHAI and Eric M. Johnson to SEATTLE, edited by Paul Tait)