Crowded skies

In the 30 years of cooperation between China and the United States, few brands epitomize the two country's relationship quite like Boeing.

Then US President Richard Nixon landed on his ice-breaking 1972 visit to China on a Boeing 707. Later the same year China purchased 10 Boeing 707s, finishing Soviet-made civil aircrafts' monopoly in China's sky. And Boeing's headquarters in Seattle is a must-go place for top Chinese leaders visiting the US.

Boeing airplanes accounted for 55 percent (715 out of 1,293) commercial jetliners operating in the country as of September. In comparison, Boeing's archrival Airbus accounts for just 34 percent.

But as China's economic muscle grew over the last few decades, simply acting as buyer in the international aviation market increasingly did not sit well with the Chinese ego and clamors for a domestic aircraft brand got louder.

Some aviation professionals argued deals with Boeing and other foreign airplane makers should not involve giving up China's aviation market without getting key technological know-how, such as aerodynamic design and avionics, in return.

China started developing the domestically designed and produced ARJ21 (Advanced Regional Jet for the 21st Century) in 2000.

The maiden flight, initially scheduled for 2005, was delayed several times but finally took place in November this year. Over 150 ARJ21s have already been ordered by domestic carriers and in November the Commercial Aircraft Corp of China sold 25 ARJ21-700 regional jets to GE Commercial Aviation Services of the US.

But Chinese anxiety over Boeing's dominant position in the domestic aircraft market is misplaced, according to Boeing executives.

Boeing sees the country as a business partner than a buyer, said David Wang, president of Boeing China.

China plays a role in producing all Boeing commercial airplane models and more than 6,000 Chinese people work for Boeing or related joint ventures and subsidiaries.

China also makes a good deal of money from Boeing. Since the 1980s Boeing has purchased more than $1.5 billion worth of aviation hardware and services from China. The company estimates purchases will at least double in the future.

"Of course it is impossible for foreign manufacturers to hand over the core technology to China," said Liu Weimin, a senior analyst with the Civil Aviation Management Institute of China. "At least Boeing trains Chinese people in the field."

Boeing has trained over 37,000 Chinese aviation professionals.

Boeing's growth in China will continue, despite the introduction of the ARJ21. The company announced plans in November to spend $21 million expanding capacity at its composite materials joint venture in Tianjin by 60 percent (increasing the venture's workforce by 400).

"With demand from aircraft makers slated to pick up in the near future, we see excellent prospects for the Tianjin unit," said Wang.

Some of that demand is expected to come from the fledgling domestic aircraft industry.

"We hope this facility will eventually become a supplier for China's large airplanes, said Carolyn Corvi, vice-president and general manager of Airplane Programs, Boeing Commercial Airplanes.

(China Daily 12/15/2008 page6)