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US and EU will work together to confront China in the aerospace industry, trade official says

  • US Trade Representative Katherine Tai calls out ‘harmful non-market practices in the sector from countries like China that distort the aerospace market’
  • She dodges answering whether US plans to seek entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

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US Trade Representative Katherine Tai said Washington and the EU would  address China’s “harmful non-market practices” in the aerospace industry. Photo: Reuters
Robert Delaney

Washington plans to cooperate with the European Union on confronting China’s non-market practices in the aerospace industry, US Trade Representative Katherine Tai said on Wednesday.

Washington’s top trade official also promoted trilateral cooperation with the EU and Japan as the best way forward to build economic ties with “democratic values”, and dodged a question about whether President Joe Biden’s administration plans to negotiate an entry to a Pacific Rim trade bloc that his predecessor Donald Trump withdrew from.

01:46

China downgrade not a problem for Airbus

China downgrade not a problem for Airbus

An agreement last year between the US and the EU over subsidies to Boeing and Airbus has given them a foundation to address “harmful” practices Beijing uses in its drive to compete in the global commercial aircraft market, Tai said in a virtual discussion organised by the Dublin-based Institute of International and European Affairs.

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“In resolving this disagreement, the United States and European Union can now turn our attention to addressing harmful no- market practices in the sector, from countries like China that distort the aerospace market and create a truly uneven playing field for the rest of the world,” Tai said.

The Chinese government often requires foreign companies to set up joint ventures with domestic firms – prompting regular complaints from Western corporations that this leads to intellectual property theft.
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The practice has been cited as a key factor hampering China’s development of a fully home-grown commercial aircraft model that can compete with those produced by Boeing and Airbus. Despite the caution, state-owned Commercial Aircraft Corporation of China (Comac) is expected to enter the narrow-body plane market with its C919 jet this year.
A C919 jet taxis on the runway during the 2020 Nanchang Flight Convention on October 31, 2020. Photo: Xinhua
A C919 jet taxis on the runway during the 2020 Nanchang Flight Convention on October 31, 2020. Photo: Xinhua
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