China's Boeing Ban Is Inviting Scrutiny on Its Own Planes
The Chinese government took aim at that target on Tuesday, ordering the country's airlines to stop taking deliveries of Boeing aircraft and to halt purchases of US aircraft-related equipment, according to a Bloomberg News article citing unidentified sources.
In the short term, this hit to Boeing will cause minimal damage because it can't keep up with the orders already on its books. The company is in the process of bolstering its manufacturing standards and is ramping up production methodically on its best-selling 737 Max aircraft. Any planes that were earmarked for Chinese airlines will be snapped up by other operators that are waiting impatiently for jets.
The long-term impact could be substantial given the large aircraft demand from China, which is forecast to make up a fifth of global airliner demand over the next 20 years and accounted for a quarter of Boeing's output in 2018. For now, Airbus SE will have this market for full-sized airliners almost to itself. The 'almost' is filled by the Commercial Aircraft Corporation of China, or Comac, which is a state-owned company that recently introduced a single-aisle airliner, the C919, that seeks to compete with the 737 Max and Airbus A320.
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