Trade war would give Airbus advantage in the Chinese market
Concerns for Boeing after seeing that China proposed a tariff of 25% for planes like the 737.
What’s going on?
China, in a move in retaliation for Trump administration fees, would grant tax advantages to the eternal rival Airbus in a market called to become the largest in the world.
Does it affect any type of planes?
China has detailed that it will impose fares for airplanes that weigh between 15,000 Kg (33,070 pounds) and 45,000 Kg, which would include some variants of the iconic Boeing 737 aircraft.
It is so important?
Yes. The single aisle aircraft, dominated by the Boeing 737 and the Airbus A320, probably represents 75% of the world market in the next 20 years (according to Boeing figures).
China, which is ready to overtake the United States as the world’s largest aircraft market by 2022, is crucial for the Chicago-based aircraft manufacturer. More than 50% of commercial aircraft operating in China are Boeing aircraft. A quarter of its global delivery last year went to China.
Is this already in force?
No. These measures are merely informative. But it is part of the game and countermeasures to impress. Apparently, not all passenger planes would be affected, at least initially. It’s not in the interest of Boeing or the U.S. to cede market share to rivals in one of the biggest markets. China also announced an additional 25% tariff for products such as soybeans and automobiles manufactured in the United States.
Data to speak like a pro:
Boeing has a completion center in Zhoushan that will be fully operational this year.
This center has the potential to deliver between 8 and 10 737 MAX aircraft per month.
Airbus has a similar completion center in Tianjin.
China expects to have 921 million passengers by the year 2036.
Airbus has 1,542 aircraft in service in China, including cargo planes
Airbus has approximately 50% of the market share in China.
China represents 24% of the total deliveries of the European company.
Airbus also assembles the A320 family aircraft in China.
China will need 7,240 new aircraft in the next two decades.
Originally published at www.conecband.com.
