Boeing's Woes Will Complicate U.S.-China Trade Talks

Date: 17 March 2019 - 21:17

News ID: ۶۴۳۴۷

LONDON (FT) - The grounding of Boeing's 737 Max 8 threatens to complicate U.S.-China trade talks by making it more difficult for Beijing to present U.S. president Donald Trump with a headline-grabbing boost to the value of goods it buys from the U.S.
Chinese airlines and financial leasing companies have the largest order book outside the U.S. for the 737 Max, which is under scrutiny from regulators worldwide after two deadly crashes within the last six months. The model is also central to Boeing’s plans, accounting for 80 per cent of the undelivered aircraft in its pipeline.
Boeing has suspended delivery of the 737 Max after regulators grounded the plane in the wake of an Ethiopian Airlines crash last Sunday, which led to the deaths of all 157 people on board. An Indonesian Lion Air flight, involving the same type of aircraft, also crashed soon after take-off in October killing 189 people.
The uncertainty over the 737 Max creates a quandary for China’s trade negotiators, who have responded to the Trump administration’s pressure over industrial policies by offering to buy an additional $1.2tn in U.S. exports over six years. Boeing aircraft feature heavily on Beijing’s shopping list, which also includes more purchases of soyabeans, corn, natural gas and crude oil.
*******China’s President Xi Jinping  (left) and U.S. President Donald Trump