Boeing’s China aviation business in the spotlight after Beijing announces sanctions on defence unit
- China’s sanctions on Boeing Defense do not include penalties on the firm’s commercial aviation business, but analysts say Beijing is ‘sending a message’
- US-China friction could affect Boeing’s share of China’s civilian aviation market, but strong demand for passenger jets means purchases are likely to continue for now
Aerospace giant Boeing is under the spotlight in China, the world’s fastest growing aviation market, after Beijing said it would sanction the Chicago-based firm’s defence subsidiary over arms sales to Taiwan.
The Chinese government, which did not specify penalties on the companies, has long opposed the United States supplying the self-ruled island with arms.
While Boeing’s commercial aviation business is not being targeted in the sanctions, growing diplomatic tensions between Beijing and Washington, which have spilled over into trade and technology, do not bode well for the world’s biggest aerospace company.
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Analysts have said Chinese airlines may opt to buy aeroplanes from Airbus, Boeing’s chief rival, in the future. Geopolitical frictions might also create a more favourable environment for China’s own narrow body passenger jet, the Comac C919, which is being developed to compete with the Boeing 737 and Airbus A320.