Boeing's latest challenge: China

The Boeing 737 Max is back in the air, and air travel is finally rebounding, helping restart orders for new planes. But Boeing is still facing a major problem that could cripple the company for years to come — US-China trade tensions. China is by far the largest and most important market for aircraft purchases. It is estimated the country will account for a quarter of commercial aircraft sales globally over the next 10 years. But in an age of US-Chinese trade tensions only 1% of Boeing's orders since 2017 have been reported as going directly to Chinese buyers. Aircraft deliveries to China, which happen years after plane orders are placed, are stronger, accounting for nearly 20% of Boeing's total since 2017. But China is still one of three major global markets where the 737 Max has yet to get clearance to fly from aviation regulators. (India and Russia are the others.) And that has kept the door shut on deliveries of Boeing's best-selling plane to the globe's biggest market. As a result, the share of Boeing's deliveries going to China has been falling as most of the rest of the world started accepting the Max once again. Boeing CEO Dave Calhoun acknowledged that China is a major problem in a recent investor presentation, grouping it alongside the Max grounding and the Covid-19 pandemic as one of three "mountains" that Boeing needed to get over. And although he said he was pleased by the progress clearing the other two peaks, he admitted China remains a challenge. Calhoun has talked to the Biden administration and understands the broader issues at stake in negotiations with China. "We need the two governments to want to restore some of the trade," he said. "And I think it's in both parties' interests to want to do that."<br/>