“Rebalance competition.” This is the goal of the Trump administration in terms of air links with China. Remember that from 2022, and with the invasion of Ukraine, American companies cannot fly over Russia to connect Asia and, in particular, China, making them less competitive compared to Chinese companies that can do so. Today, Donald Trump intends to ban Chinese companies from flying over Russia for their flights to the United States.
Such a decision would considerably lengthen (several hours) the connections between China and the United States, given that the shortest route passes through Russia. This would mean putting an end to an “unfair” advantage, emphasizes the US Department of Transportation (DOT). For its part, the Chinese government denounces a “punitive” measure that “hinders human and commercial exchanges.”
Such a decision could call into question Boeing’s timid return to China. Due to tensions between both countries, the last contract obtained by Boeing with the Chinese authorities dates back to 2017, and the manufacturer has only received thirty gross orders since January 2018.
A pending mega order
China was also the last country to resume Boeing deliveries, in December 2023, after the accident of two 737 MAX 8s in October 2018 and March 2019, which left 346 dead in total. The manufacturer, the largest American exporter, was sanctioned by Beijing in retaliation for the customs duties announced by Donald Trump on its imports to the United States. But since then, Donald Trump has focused on including Boeing orders in bilateral trade deals.
Last August, Bloomberg reported that Boeing was in talks with Chinese authorities about an order for up to 500 planes. Therefore, new tensions between the two countries could challenge this perspective. However, the Chinese market is strategic for aircraft manufacturers and, in particular, for Boeing, with 25% of its exports. In its latest annual report on the twenty-year outlook for commercial aviation, published in June, Boeing estimates the number of new aircraft that will be manufactured by 2044 worldwide at 43,600, of which 21% will meet demand in China, which has become the world’s second largest civil aviation market.
Source: BFM TV
