The Strategist

Boeing, Airbus worried about US-China trade war

11/06/2018 - 15:12

The two largest aircraft manufacturers in the world signaled on Tuesday that they were interested in ending the trade war between the United States and China, Reuters reported.

Boeing and Airbus made comments on the opening day of the International Airshow China 2018, which will be held November 6-11 in Zhuhai.

Foreign airlines are interested in deals with China due to its growing demand for transportation services. However, the prospects are overshadowed by Beijing’s desire to create its own leaders in industries from aviation to the production of semiconductors and robots.

The trade war has complicated relations between Beijing and Washington in recent months. US President Donald Trump is accusing China of stealing intellectual property, creating barriers for American business, and also criticizing the US trade deficit with China. Beijing calls these complaints unfounded. The countries imposed reciprocal duties for billions of dollars.

While American aircraft, one of the main US exports to China, have not yet been subject to Chinese duties, analysts are waiting for the consequences of a trade war for American companies like Boeing.

The top manager of the European aircraft manufacturing concern Airbus, George Xue, said at a press conference that the company does not expect an unexpected increase in sales as a result of trading tensions.

“I’m Chinese, and we don’t like such a trade war,” he said. “No one will win this trade war.”

Airbus was hoping to make a deal to supply 184 aircraft during a trip to China by French President Emmanuel Macron in January, but the negotiations seem to be at an impasse, Reuters industry sources say.

Boeing senior vice president of sales in Northeast Asia, Rick Anderson, said that China is a fast-growing aviation market, and he believes that Washington and Beijing understand this.

"We continue to interact with the leaders of the United States and China and continue to call for a productive dialogue to eliminate trade contradictions," he said. "We are optimistic about the chances of a quick solution."

Last week, US President Donald Trump gave hope to resolve the conflict with China, instructing to prepare options for a trade agreement.