In the perennial battle between Boeing Co. and Airbus SE, China has for years tried to keep orders on an even keel between the duopoly. Now, thanks to U.S. President Donald Trump, the American planemaker is at risk of losing its meager lead in the world’s second-biggest aviation market.
With the rising prospect of an all-out trade war after the Trump administration announced tariffs on $50 billion of goods imported from China, President Xi Jinping is under pressure to retaliate. A clue to his tactics may be revealed during French Prime Minister Edouard Philippe’s visit to Beijing this weekend, where he’ll try to seal a deal for more than 180 Airbus A320 jets.
The $18 billion order, if confirmed, would send a strong signal to the U.S. that China has effective options to hit hard where it hurts. The Asian power is likely to favor Airbus planes for future orders, according to Jin Wei, an aviation researcher at China Center for Information Industry Development, a state-backed think tank in Beijing.
“Awarding big plane orders to Airbus will be a wake-up call to the U.S. that China has alternatives and does not fear clashing with U.S. on trade,” Jin said.
Slender Lead
Airbus, Boeing almost neck and neck in China
Source: CAPA Fleet Database
Note: Active fleet for Boeing 1,638, Airbus 1,577, Embraer 104, Bombardier 43, Others 84
Such a strategy may also help China drive deeper divisions within the
Article source: https://www.bloomberg.com/news/articles/2018-06-21/boeing-risks-losing-china-lead-as-trump-and-xi-clash-over-trade