Trade War ‘may hurt’ US Boeing
AT CHINA’S biggest air show, a top Boeing executive voiced hope that the US and China would resume trade talks. He has reason to worry. The US aerospace giant could fly into turbulence in a protracted commercial conflict.
While Boeing has so far escaped the rounds of tit-for-tat tariffs, analysts say it is at risk of being the next victim if the trade war escalates, which would benefit its rival Airbus.
Tariffs would bite deep for the Chicago-based company as China – the world’s second biggest aircraft market – represents one-fifth of its global orders.
At Airshow China in the southern city of Zhuhai, the president of Boeing China, John Bruns said the company was “confident” that dialogue will resume between US and Chinese negotiators.
“A healthy airspace industry is in the best interests of both countries,” Bruns said on the sidelines of the exhibition, where companies are showing off their latest planes, helicopters and drones.
While Boeing’s large planes have avoided tariffs, China has other ways to hurt the company, just as it battles Airbus for bigger shares of the massive market.