Latest news with #ComacC919
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First Post
6 days ago
- Business
- First Post
Big blow to Chinese plane-makers as Trump bars export of critical jet parts, technology
The US Commerce Department has suspended licenses of US firms that allowed export of critical products and technology to state-owned Commercial Aircraft Corp of China Ltd read more A Comac C919 flies during an aerial display at the Singapore Airshow at Changi Exhibition Centre, in Singapore, February 20, 2024. Source: Reuters In a major setback to China's plane-making industry, the Donald Trump administration of the US has blocked the export of critical US jet parts and technology to the communist country. According to a New York Times report, the US Commerce Department has suspended licenses of US firms that allowed export of critical products and technology to state-owned Commercial Aircraft Corp of China Ltd (Comac). Earlier, the Commerce Department confirmed to Bloomberg that it was reviewing 'exports of strategic significance to China.' STORY CONTINUES BELOW THIS AD 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending,' the department said in a statement. Why is the move a setback for China? The Comac, China's government-backed plane-maker, relies on American-made GE Aerospace engines for manufacturing its C919 planes. USA's fresh restrictions are not likely to create supply chain issues for Comac immediately as the firm had already stockpiled engines to build dozens of planes this year, reported Bloomberg. However, the Trump administration's move is poised to hurt the firm's business prospects in long term. China-US trade war The latest move by the Commerce Department is a part of an array of challenges that Beijing faces in its trade tensions with the world's largest economy. China has repeatedly called American sanctions on Chinese goods 'wrongful' and called on Washington to cancel them. On Wednesday, as a US court blocked Trump's sweeping reciprocal tariffs on its trading partners, Beijing responded by saying 'trade wars have no winners'. Global markets have been in chaos since Trump's tariff announcements, followed by his sudden reversals and pauses as foreign governments scrambled to negotiate. The turmoil worsened due to a prolonged trade war between the world's two economic giants. They slapped massive tariffs on each other, peaking at a 145 per cent US tax on Chinese imports and a 125 per cent Chinese tax on American goods. The two nations have since called a truce, with US tariffs on China dropping to 30 per cent and Chinese tariffs on some US imports falling to 10 per cent.
Yahoo
02-05-2025
- Business
- Yahoo
The CEO of Europe's biggest airline is in a spat with a congressman over threats to cancel Boeing orders and buy Chinese planes
Ryanair's CEO said he was considering buying planes from China's Comac due to lower prices. A congressman warned Michael O'Leary not to do so, citing allegations of corporate espionage. However, O'Leary is said to have replied, threatening to cancel Boeing orders if tariffs raise prices. The CEO of Europe's biggest airline is in a growing spat with a US congressman who warned him against buying any planes from China, as tariffs cause uncertainty in the aviation industry. Several media outlets reported Thursday that Ryanair's Michael O'Leary threatened to cancel orders for new planes from Boeing if tariffs are levied on the jets. It came two days after he was sent a letter by Raja Krishnamoorthi, the ranking member of the House Select Committee on the Chinese Communist Party. He said he was raising "strong concerns" about the Ryanair boss's comments in a March interview. "The Chinese are basically building a fucking A320. So if it was cheap enough — 10 or 20% cheaper than an Airbus aircraft — then we'd order it," O'Leary told travel industry outlet Skift. The Comac C919 is a narrow-body plane similar to the best-selling Airbus A320 and Boeing's 737. It has received over 1,000 orders, almost entirely from Chinese companies. Airbus CEO Guillaume Faury believes Comac's rise could see the sector go "from a duopoly to a potential triopoly." Ryanair is a budget carrier with hundreds of Boeing 737s, making it one of the American planemaker's biggest customers. It also operates smaller subsidiaries that fly Airbus jets. However, Ryanair has kept its options open over concerns the European Union could impose tariffs on American products in response to Donald Trump's 10% levy. Krishnamoorthi, the Democratic representative for Illinois's 8th congressional district, told the Irish airline it shouldn't do business with China. He cited a Justice Department indictment from 2018 that accused 10 Chinese intelligence operatives of participating in a corporate espionage campaign to steal information about turbofan jet engines. He also said "evidence indicates" Comac has received government subsidies, although Boeing and Airbus have also done so in the past. The Ryanair boss appears to be holding firm, reportedly saying in his Thursday reply that he would look to alternative suppliers, including Comac. Ryanair and the Democrats of the House Select Committee on the CCP did not reply to requests for comment sent by Business Insider. While Comac would massively benefit from an order from a major aviation player like Ryanair, tariffs could be a make-or-break moment for the upstart manufacturer. The C919 relies heavily on American-made parts, on which China has imposed tariffs of 125%. However, a potential EU-US trade war could raise prices for planes from aviation's two main players, Airbus and Boeing. Analysts at Barclays predicted that this "might well prove the catalyst to launch the competing Chinese C919 narrow body onto the international stage." Read the original article on Business Insider Sign in to access your portfolio
Business Insider
02-05-2025
- Business
- Business Insider
The CEO of Europe's biggest airline is in a spat with a congressman over threats to cancel Boeing orders and buy Chinese planes
Several media outlets reported Thursday that Ryanair's Michael O'Leary threatened to cancel orders for new planes from Boeing if tariffs are levied on the jets. It came two days after he was sent a letter by Raja Krishnamoorthi, the ranking member of the House Select Committee on the Chinese Communist Party. He said he was raising "strong concerns" about the Ryanair boss's comments in a March interview. "The Chinese are basically building a fucking A320. So if it was cheap enough — 10 or 20% cheaper than an Airbus aircraft — then we'd order it," O'Leary told travel industry outlet Skift. The Comac C919 is a narrow-body plane similar to the best-selling Airbus A320 and Boeing's 737. It has received over 1,000 orders, almost entirely from airlines in Southeast Asia. Airbus CEO Guillaume Faury believes Comac's rise could see the sector go "from a duopoly to a potential triopoly." Ryanair is a budget carrier with hundreds of Boeing 737s, making it one of the American planemaker's biggest customers. It also operates smaller subsidiaries that fly Airbus jets. However, Ryanair has kept its options open over concerns the European Union could impose tariffs on American products in response to Donald Trump's 10% levy. Krishnamoorthi, the Democratic representative for Illinois's 8th congressional district, told the Irish airline it shouldn't do business with China. He cited a Justice Department indictment from 2018 that accused 10 Chinese intelligence operatives of participating in a corporate espionage campaign to steal information about turbofan jet engines. He also said "evidence indicates" Comac has received government subsidies, although Boeing and Airbus have also done so in the past. The Ryanair boss appears to be holding firm, reportedly saying in his Thursday reply that he would look to alternative suppliers, including Comac. The C919 relies heavily on American-made parts, on which China has imposed tariffs of 125%. However, a potential EU-US trade war could raise prices for planes from aviation's two main players, Airbus and Boeing.
Business Insider
02-05-2025
- Business
- Business Insider
The CEO of Europe's biggest airline is in a spat with a congressman over threats to cancel Boeing orders and buy Chinese planes
The CEO of Europe's biggest airline is in a growing spat with a US congressman who warned him against buying any planes from China, as tariffs cause uncertainty in the aviation industry. Several media outlets reported Thursday that Ryanair's Michael O'Leary threatened to cancel orders for new planes from Boeing if tariffs are levied on the jets. It came two days after he was sent a letter by Raja Krishnamoorthi, the ranking member of the House Select Committee on the Chinese Communist Party. He said he was raising "strong concerns" about the Ryanair boss's comments in a March interview. "The Chinese are basically building a fucking A320. So if it was cheap enough — 10 or 20% cheaper than an Airbus aircraft — then we'd order it," O'Leary told travel industry outlet Skift. The Comac C919 is a narrow-body plane similar to the best-selling Airbus A320 and Boeing's 737. It has received over 1,000 orders, almost entirely from airlines in Southeast Asia. Airbus CEO Guillaume Faury believes Comac's rise could see the sector go "from a duopoly to a potential triopoly." Ryanair is a budget carrier with hundreds of Boeing 737s, making it one of the American planemaker's biggest customers. It also operates smaller subsidiaries that fly Airbus jets. However, Ryanair has kept its options open over concerns the European Union could impose tariffs on American products in response to Donald Trump's 10% levy. Krishnamoorthi, the Democratic representative for Illinois's 8th congressional district, told the Irish airline it shouldn't do business with China. He cited a Justice Department indictment from 2018 that accused 10 Chinese intelligence operatives of participating in a corporate espionage campaign to steal information about turbofan jet engines. He also said "evidence indicates" Comac has received government subsidies, although Boeing and Airbus have also done so in the past. The Ryanair boss appears to be holding firm, reportedly saying in his Thursday reply that he would look to alternative suppliers, including Comac. Ryanair and the Democrats of the House Select Committee on the CCP did not reply to requests for comment sent by Business Insider. While Comac would massively benefit from an order from a major aviation player like Ryanair, tariffs could be a make-or-break moment for the upstart manufacturer. The C919 relies heavily on American-made parts, on which China has imposed tariffs of 125%. However, a potential EU-US trade war could raise prices for planes from aviation's two main players, Airbus and Boeing. Analysts at Barclays predicted that this "might well prove the catalyst to launch the competing Chinese C919 narrow body onto the international stage."
Miami Herald
21-04-2025
- Business
- Miami Herald
China may have made its first big mistake in U.S. trade war
Most leaders spend the majority of their economic energy trying to avoid trade wars, but President Donald Trump isn't like most leaders. He truly believes that tariffs are a good way to force your trade rivals to act "fairly" when dealing with the U.S., which he says has been taken advantage of for decades by its trading partners. Don't miss the move: Subscribe to TheStreet's free daily newsletter The problem with trade wars is that they can get messy, and oftentimes, the offensive move you make against a foreign adversary could have detrimental blowback to your interests back home. Last week, the Trump administration was forced to admit that its 145% tariffs against China may have gone a bit too far. This was after after Trump issued tariff carveouts for certain electronics like smartphones and laptops because that vital section of the economy could not withstand the extra costs. Related: Apple's tech tariff exemption had one shocking supporter The administration rightly calculated that since the majority of China's exports to the U.S. are electronics, tariffs on that sector would inflict the right amount of pain. But whether it was because of special interests or a moment of clarity, both countries avoided the worst-case scenario. But this trade war is bilateral, and the U.S. isn't the only country prone to making mistakes in such a fraught environment. China may have just made its first blunder in this match, according to a new report, and it could be devastating for the country. China is expected to be the biggest market for plane deliveries over the next 10 years, thanks to a rapidly expanding middle class and greater room to grow toward modernizing its fleets, compared to its counterparts in the West. Boeing is one of the world's largest planemakers, and the U.S. company is currently being hobbled by a string of self-induced errors. So China probably thought it could hurt two birds with one stone after the country told airlines to withhold new orders of Boeing aircraft and seek approval before taking delivery of plane orders. While China does have its own plane-building company, Shanghai-based Comac, it does not have nearly the capacity, nor the expertise, to replace Boeing's production. Boeing exported nearly $12 billion in aircraft, spacecraft, and parts to China in 2024 while importing virtually nothing, the Wall Street Journal reported. The problem with this strategy is that China needs Boeing. The Comac C919 is being pitched as the Chinese version of Boeing's popular 737 MAX and European rival Airbus' A320neo. But Comac doesn't sell very many C919s, either inside or outside China. Since its maiden flight in 2017, Comac has carried over one million passengers, but Air China, the country's largest airline, says the C919 accounts for less than 1% of its 930-plane fleet. Related: Forget tariffs, billionaire Ray Dalio says this is the bigger threat Comac also relies on Leap engines from a General Electric Aerospace joint venture, cockpit systems from Honeywell International, and other technology from RTX, all of which are U.S. companies. Despite the considerable sound and fury kicking off President Donald Trump's version of negotiations, the U.S. was clearly placed on the defensive after China really started retaliating against U.S. tariffs. The back and forth has people in the business community worried about worst-case scenarios. "[We're] very close to a recession. And I'm worried about something worse than a recession if this isn't handled right," Bridgewater Associates founder Ray Dalio recently said, while going on to define a recession as two consecutive quarters of negative gross domestic product growth. Read more: Billionaire Michael Bloomberg sends hard-nosed message on economyJim Cramer offers blunt one-word reaction to 20% tariffsAnalyst who predicted 2024 stock market rally offers blunt post 'Liberation Day' forecast During the Great Recession, which officially lasted from December 2007 to June 2009, real GDP fell by 4.3%. The economy shed over 8.7 million jobs between February 2008 and February 2010. In 2008, the S&P 500 fell by nearly 40%, the Dow dropped by 35%, and the Nasdaq fell by 42%. "We are having profound changes in our domestic we're having profound changes in the world order. Such times are very much like the 1930s," Dalio said. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
