A giant aviation deal from China on Friday underscored how trade tension between Washington and Beijing can impact individual companies, with Boeing left looking on as rival Airbus scooped up orders worth at least $37bn.
China is a key market for Boeing’s 737 family of jets and Airbus’s A320s, mainstays of modern commercial aviation. Relations between China and the West have become increasingly strained in recent years, particularly with the US as a trade war erupted and widespread tariffs were imposed by both sides. Boeing is America’s biggest exporter.
Carriers typically order aircraft years in advance due to limited manufacturing capacity, and they get discounts when they book in bulk, with lucrative service and maintenance deals. Boeing and Airbus are struggling with production disruptions, partly due to supplier delays.
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