Boeing to open its first 737 plant in China under shadow of a trade war

Boeing is poised to open its first 737 finishing plant in China, underscoring the company’s commitment to the world’s largest aircraft market amid simmering trade tension. The planemaker will inaugurate its completion and delivery center in Zhoushan, 90 miles southeast of Shanghai, on Saturday, after more than a year of construction. The facility marks a rare industrial foray outside of the US for Boeing and a joint venture with state-owned planemaker Commercial Aircraft Corp. of China Ltd. While the plant was sent in motion before US President Donald Trump was elected, the ribbon-cutting risks being overshadowed by his tit-for-tat on duties with China on products ranging from cars, machinery to pork and soybeans. A three-month truce announced earlier this month has been under threat since the arrest of Huawei Technologies Co.’s CFO in Canada after the US sought her extradition on allegations of violating Iran sanctions. Chinese workers at the new plant will put the finishing touches on US-built planes flown over from a Seattle-area factory, before delivering them to local customers. “It’s difficult to overestimate the importance right now of China as a customer,” said Ken Herbert, analyst with Canaccord Genuity.<br/>