China, US trade tensions threaten Boeing 737 MAX comeback as CEO hopes for ‘thaw’
- China was the first country to ground Boeing’s 737 MAX more than two years ago after two deadly crashes, but has yet to lift its ban on flying the plane
- Boeing CEO Dave Calhoun said restoring trade between China and the US trade could help build a broader framework for numerous issues that have contributed to frosty relations
Boeing CEO Dave Calhoun warned that a prolonged trade deadlock between the United States and China threatens the comeback of its 737 MAX and, ultimately, the company’s long-standing role as an industrial champion.
China will be one of the world’s hottest aviation markets as the coronavirus pandemic recedes, accounting for about a quarter of expected growth in jet sales over the next decade, Calhoun said on Thursday.
But without an agreement in place to restart purchases and deliveries, Boeing cannot be sure when to raise output of the Max, the company’s main source of revenue and cash.
“If I’m not allowed to serve, I cede global leadership,” Calhoun said of the Chinese market, speaking at a virtual Bernstein conference. “I’ll never give up on that. But it’s going to create real issues for us in the next couple of years if we can’t thaw out some of the trade structure.”
Unlocking China looms as a critical challenge for Boeing now that the Max has returned to service in most of the Americas and Europe, and rising vaccination rates spur a rebound in air travel.