U.S. says Chinese government blocking Boeing airplane purchases

imageStock Markets15 minutes ago (Sep 28, 2021 06:22PM ET)

(C) Reuters. FILE PHOTO: U.S. Commerce Secretary Gina Raimondo speaks during a Reuters interview at the Department of Commerce in Washington U.S., September 23, 2021. REUTERS/Kevin Lamarque

By David Shepardson

WASHINGTON (Reuters) – U.S. Commerce Secretary Gina Raimondo said on Tuesday the Chinese government was preventing its domestic airlines from buying “tens of billions of dollars” of U.S.-manufactured Boeing (NYSE:BA) Co airplanes.

Raimondo said that China was not abiding by commitments to buy U.S. goods it made in 2020 as part of a trade deal with the previous administration.

“I don’t know if Boeing is here. … There’s tens of billions of dollars of planes that Chinese airlines want to buy but the Chinese government is standing in the way,” she said in a question-and-answer session after a speech in Washington.

Boeing shares fell 2.6% on Tuesday to $218.41.

In a separate interview with National Public Radio broadcast on Tuesday, Raimondo confirmed she was specifically referencing China’s blocking of Boeing airplane purchases.

“The Chinese need to play by the rules. We need to hold their feet to the fire and hold them accountable,” she said.

Boeing declined to comment. The Chinese embassy in Washington did not immediately comment.

Boeing Chief Executive Dave Calhoun in March urged the United States to keep human rights and other disputes separate from trade relations with Beijing.

“I am hoping we can sort of separate intellectual property, human rights and other things from trade and continue to encourage a free trade environment between these two economic juggernauts,” Calhoun said at the time. “We cannot afford to be locked out of that market.”

Boeing last week raised its forecast slightly for China’s aircraft demand for the next 20 years, betting on the country’s quick rebound from COVID-19 and future growth in its budget airline sector and e-commerce.

Boeing estimated that Chinese airlines will need 8,700 new airplanes through 2040, 1.2% higher than its previous prediction of 8,600 planes made last year. Those would be worth $1.47 trillion based on list prices, Boeing said.

China’s aviation authority, the first regulator to ground the Boeing 737 MAX following two deadly crashes, has yet to approve the return of service for the aircraft in the country. China accounts for a quarter of Boeing’s orders of all aircraft.

U.S. says Chinese government blocking Boeing airplane purchases

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Woodside flags 27% drop in Wheatstone gas reserves, shares fall

Stock Markets15 minutes ago (Oct 20, 2021 09:20PM ET) (C) Reuters. FILE...

Subscribe

Categories

Same Category

Woodside flags 27% drop in Wheatstone gas reserves, shares fall

Stock Markets15 minutes ago (Oct 20, 2021 09:20PM ET) (C)...

Biden’s Japan envoy pick vows to make Nissan executive case a priority

Stock Markets11 minutes ago (Oct 20, 2021 08:26PM ET) (C)...

Tesla cautions factory openings won’t be simple, posts record earnings

Stock Markets6 minutes ago (Oct 20, 2021 07:31PM ET) (C)...