"Business War" hangs over China Air Show


The commercial war with the United States and spying charges cast a shadow over the Zhuhai Aviation Expo this week as suppliers study the implications of the country's economic slowdown for the booming demand for aircraft.
The biennial exhibition from Nov. 6 to 11 is usually an opportunity for China to showcase its aviation prowess to industry executives, diplomats and arms buyers from some 40 countries.

The exhibition is expected to be packed with aircraft such as Airbus and Embraer, which represent commercial aviation ambitions in China, but China Commercial Aircraft Corporation (COMAC), the national airline manufacturer, will not be present. .

Boeing, which opens an assembly line for 737s in China, will not offer any of its planes, but only aircraft models.

"We do not expect a large sales volume this year, you know the Chinese economy is not at its best this year, so the companies that usually send 10 people, only send 5 this year," said Chinese aviation expert Li Xiaogin. Reuters.

China has become a place to grab deals for foreign companies. Chinese airlines have large fleets to keep pace with growing demand for travel, making them in a position to overtake the United States as the world's largest aviation market in the next 10 years.

But China's economic growth slowed to its lowest level since the financial crisis, and its relations with other countries have been strained by Beijing's ambitions to develop local industries such as aviation.

Although US-made aircraft are not subject to Chinese customs tariffs so far, analysts say they are still waiting for what the trade war will produce for US companies such as Boeing, Hany and Walgulf Stream, which face fierce competition in China from companies such as Airbus and others.

The United States exported US $ 16.3 billion worth of civilian aircraft to China in 2017, the largest category of goods exported to China, according to a study by the Federal Reserve Bank of St. Louis.

"China is unlikely to be bought from Airbus instead of Boeing," said Mark Chippin, an expert in Chinese aviation at Oxford University.

"In addition, there may be a reassessment of the relative attractiveness of industrial partners in future Chinese aircraft programs, such as the SR929 program, which may favor European suppliers of Americans to supply components and design structures," he said.