Boeing to gain as China accepts US safety approval

The US and China agreed to recognise the other’s aircraft safety approvals, which may boost the Asian nation’s burgeoning aviation industry and make it easier for companies like Boeing to sell products there.

The US- China Bilateral Aviation Safety Agreement was announced Friday, before President Donald Trump is set to travel to China.

Each nation will move toward automatic approvals of aircraft designs, manufacturing and equipment, the Federal Aviation Administration said in a press release. It’s similar to agreements between the US and Canada, and the US and Europe, which have mature aircraft manufacturing industries.

The aviation agreement is part of an effort between the two nations that dates to 2005. Since then, China has consulted extensively with the FAA and adopted much of the US system of aviation regulation. Under the agreement, the FAA and the Civil Aviation Administration of China will recognise the other’s regulatory systems for aircraft and parts.

The significance of the agreement is more symbolic than concrete as the two nations have been increasingly cooperative on aviation issues for years, yet it’s an significant way for US companies to maintain a toehold in one the world’s largest aircraft markets, said Richard Aboulafia, an industry analyst with the Teal Group.

“This is diplomatically important,” Aboulafia said. “It shows that the US takes China’s aviation industry seriously and that it regards their civil aviation officials as reliable partners.”

China went from being an insignificant buyer of airliners in the early 2000s to the world’s largest in 2015, he said. The country lost the lead last year, but is expected to remain one of the biggest aircraft markets for decades.

The agreement may also help speed international approvals for the first Chinese aircraft designed to compete against single-aisle planes made by Boeing and Airbus.

State-owned Commercial Aircraft of China, or Comac, tested its C919 jet in May. The company has orders for 730 planes pending certification from regulators. It’s designed to seat as many as 174 people.

In July, the company won approval to start mass production of a separate, 90-seat regional jet, the ARJ21.

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The significance of the agreement is more symbolic than concrete as the two nations have been cooperative on aviation issues for years