Boeing Stands to Gain Big in Long-Term China Trade Deal
Long-term China trade deal might lead to Boeing reaping significant gains, according to analyst's assertion.
looks like Boeing (BA) could be one of the biggest winners in a long-term trade deal with China, according to aviation industry analysts.
China's Aircraft Dilemma
China has a pressing need for new aircraft, with Visual Approach Analytics pointing out a 75% drop in new plane capacity coming into the country since 2018, before the 737 MAX grounding. Meanwhile, the Trump administration is pushing for U.S. trading partners to boost their purchases of American goods.
Boeing's Opportunity
Following the reduction of tariffs between the U.S. and China, China reportedly dropped a rule blocking Boeing plane deliveries. This move comes after Qatar Airways agreed to buy up to 210 Boeing 787 Dreamliner and 777X aircraft during President Trump's recent Middle East trip. Furthermore, British Airways owner IAG announced the purchase of 32 787-10 planes.
The Political Angle
Boeing's involvement in trade has become politically significant. Reestablishing trade ties with China could help offset substantial U.S.-China trade imbalances by increasing American exports. High-value aircraft sales would narrow this trade deficit, securing a strategic advantage for Boeing.
Long-Term Benefits
The potential normalization of U.S.-China commercial relations is crucial for Boeing’s supply chain planning, market forecasting, and sustained growth in China. This deal also aligns with Boeing's strategy of securing large aircraft orders in global markets, as demonstrated by recent multi-billion-dollar deals worldwide.
In summary, a long-term trade deal with China offers Boeing multiple benefits:
- Resumption of aircraft deliveries to Chinese carriers, providing revenue and market share opportunities.
- Reduced tariffs that improve the competitiveness of Boeing aircraft in China.
- Contribution towards reducing the U.S.-China trade imbalance through increased export revenues.
- Long-term strategic positioning in a crucial growth market, aiding Boeing’s global expansion and stability amid geopolitical uncertainties.
These factors combined could significantly strengthen Boeing’s commercial prospects and economic contributions in the years ahead.
In light of the long-term trade deal with China, Boeing might issue a new type of token as a promotional strategy for their aircraft, attracting more investors in the Initial Coin Offering (ICO) market. Concurrently, the latest technology in sports equipment manufacturing could be an exciting collaboration between Boeing and sports corporations, expanding Boeing's product portfolio and potential revenue streams.
