Business

Beijing blocking local airlines from Boeing buys, US says

Washington official says China not upholding vow made last year, as part of trade deal with previous govt, to buy American goods

Updated 5 years ago · Published on 29 Sep 2021 2:30PM

Beijing blocking local airlines from Boeing buys, US says
The Chinese need to play by the rules, says US Commerce Secretary Gina Raimondo. – Reuters pic, September 29, 2021

WASHINGTON – United States Commerce Secretary Gina Raimondo yesterday said the Chinese government is preventing its domestic airlines from buying “tens of billions of dollars” of US-manufactured Boeing airplanes.

She said China is not abiding by commitments to buy US goods it made last year as part of a trade deal with the previous administration.

“I don’t know if Boeing is here,” she said in a question-and-answer session after a speech here.

“There are tens of billions of dollars of planes that Chinese airlines want to buy, but the Chinese government is standing in the way.”

Boeing shares fell 2.6% yesterday to US$218.41 (RM915.57).

In a separate interview with National Public Radio broadcast yesterday, Raimondo confirmed that she was specifically referencing China’s blocking of Boeing airplane purchases.

“The Chinese need to play by the rules. We need to hold their feet to the fire, and hold them accountable.”

Boeing declined to comment. The Chinese embassy here did not immediately comment.

Boeing chief executive Dave Calhoun in March urged the US to keep human rights and other disputes separate from trade relations with Beijing.

“I am hoping that we can sort of separate intellectual property, human rights and other things from trade, and continue to encourage a free trade environment between these two economic juggernauts.

“We cannot afford to be locked out of that market.”

Boeing last week raised its forecast slightly for China’s aircraft demand for the next 20 years, betting on the country’s quick rebound from Covid-19 and future growth in its budget airline sector and e-commerce.

It estimated that Chinese airlines will need 8,700 new aircraft through 2040, 1.2% higher than its prediction made last year of 8,600 planes.

Those would be worth US$1.47 trillion based on list prices, said the firm.

China’s aviation authority, the first regulator to ground the Boeing 737 MAX following two deadly crashes, has yet to approve the model’s return to service in the country.

China accounts for a quarter of all of Boeing’s aircraft orders. – Reuters, September 29, 2021

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