Boeing Says China Will Buy 7,690 New Planes. But Then There's Trump's Trade War
On Tuesday, Boeing said China would need 5,730 single-aisle planes, accounting for 75% of total new deliveries during the next two decades
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September 11, 2018 - By BLOOMBERG
Today, Tuesday, Boeing said China would need 5,730 single-aisle planes, accounting for 75% of total new deliveries during the next two decades
Boeing (BA, -2.13%) painted an optimistic forecast for China, an aviation market soon poised to become the world's biggest. The planemaker also needs to overcome a tit-for-tat trade war that President Donald Trump is ratcheting up.
The country will need 7,690 new planes worth $1200 billion ($1.2 trillion) over the next two decades, the Chicago-based planemaker said in Beijing Tuesday. That's a 6% boost from its projections a year ago, as China's middle class continues to grow and seek out air travel, according to Randy Tinseth, Boeing's vice president of marketing.
"The future of commercial aviation in China is very exciting," he said in a statement.
But that outlook could be threatened if Trump makes good on a proposal to slap tariffs on another $267 billion of Chinese exports, on top of the $200 billion of items his administration is putting final touches on and the $50 billion he's already targeted.
That would cover basically everything China exports and could trigger retaliation in kind from Beijing, a move that could ensnare Boeing's passenger jets — which have been left off tariff hit lists thus far.
The $12200 billion ($12.2 trillion) Asian economy, the world's biggest source of outbound travelers, is a crucial market for both Boeing and Airbus(EADSY, +1.06%) as mainland carriers expand capacity and add new destinations across the world. The nation accounted for about 13% of Boeing's revenue last year, according to data compiled by Bloomberg.
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