China to buy 300 jets and get a Boeing plant: report
But it won't be at the expense of American jobs, says CEO
Seattle
US AEROSPACE giant Boeing has reached deals with Chinese firms to sell 300 aircraft and set up a completion centre in China, state media and its local partner said on Wednesday, as President Xi Jinping began a visit to the United States.
The massive order, which was not immediately confirmed by Boeing, demonstrates the vital importance of the Chinese market despite a growth slowdown that threatens to slow the expansion of air travel.
The state-owned Commercial Aircraft Corporation of China (COMAC) also reached an agreement with Boeing to set up a "completion centre" in China for its narrow-body 737 airliners, Xinhua said.
It represents a step-up in Boeing's competition in China with European rival Airbus, which already has a manufacturing presence there.
The Xinhua report, datelined from Seattle where Mr Xi on Tuesday started his first US state visit, gave no details of the models bought by a group of Chinese companies or the value of the sale. Aviation analyst Shukor Yusof described it as the biggest ever order by a country.
Mr Xi was due to visit Boeing's main aeroplane factory in Washington state later on Wednesday.
"China's rapidly growing aviation market plays a crucial role in our current and future success," Boeing chairman Jim McNerney said in a statement last week.
COMAC confirmed to AFP that it will set up a joint venture with Boeing for interior completion, painting and other delivery support services for Chinese customers.
"This shows cooperation between Boeing and a Chinese enterprise has been lifted to a major-manufacturer level," it said in a statement.
The wording echoes the "new model of major country relations" phrase that Chinese officials use to describe ties with the US, suggesting parity between the powers.
China is expected to add 6,330 new aircraft worth US$950 billion to its commercial fleet by 2034, Boeing said last month in its annual China Current Market Outlook.
"The emerging middle class in China is helping to boost demand," Mohshin Aziz at Malayan Banking told Bloomberg News. "Most of the planes ordered will be for growth and very few will be for replacement."
A completion centre in China for the medium-range Boeing 737 will be the firm's first outside the US.
Boeing chief executive Dennis Muilenburg said the China completion centre would not come at the expense of US jobs. "As we ramp up capabilities in China, including additional 737-related work, the actions that we'll take are actions that will also allow us to grow jobs here in the US," he said.
Mr Muilenburg, who became CEO on July 1, said Boeing has had operations in China for 42 years and is continuing to invest to expand its capabilities there. Boeing is investing "in a way that allows us to grow jobs around the world". AFP, Reuters
