Boeing deal won’t end its China troubles
Boeing’s agreement for 200 jets marks the end of a nine-year drought in China. But the order was considerably smaller than expected — and a reminder of how much ground it has lost in the world’s second-largest aviation market.
There’s little the American plane maker can do directly to overcome a number of disadvantages in the priority region, especially when it’s being weaponized for diplomatic leverage. But it should make the most of a global aircraft shortage to appeal to Chinese airlines, whose fleet is expected to double over the next two decades due to robust demand for air travel.
That’s why it was a surprise when the confirmed deal was less than half of the 500 that was reportedly in discussion. Boeing hasn’t announced any major sales to commercial airlines in the country since November 2017, during a state visit to Beijing by U.S. President Donald Trump in his first term.
Orders evaporated in 2018 after Trump began his first trade war with China. A year later, global aviation regulators grounded Boeing’s bestselling 737 Max following two fatal crashes caused by a design flaw. The pandemic, which crushed demand for air travel, didn’t help matters.
But the rising geopolitical rivalry is........
