China to enter aircraft market
Very cool article from FT about how China intends to compete with Boeing and Airbus in the market for large passenger jets. This is big news because the Chinese market, at ~$350 billion, is likely to be the second largest market (behind the US) over the next 20+ years. The international market as a whole is valued at $2.6 trillion over that same time span.
What really interests me is that the people quoted in this article see China as a really credible threat. It has forced Boeing and Airbus to manufacture parts in China as well as do a lot of tech-transfer, in the hopes of building up a domestic base of technical expertise. It now looks as though China feels it has the expertise to begin the launch of a full-fledged domestic aviation/aerospace industry, thanks in part to knowledge gained from those Western companies. This just demonstrates how China is using its market size (and consequent market power) to further its own long-term ambitions. And of course, the fledgling industry is going to be supported by a lot of government money [though no mention of how much, as of yet].
See quote below:
- "Steven Udvar-Hazy, chairman and chief executive of International Lease Finance Corporation, one of the world’s top two aircraft leasing companies and one of the most influential purchasers of new aircraft, said last week that both China and Russia could develop aircraft capable of competing with the Boeing 737 and Airbus A320 families of single aisle jets within 15 years with government backing and technology gained from both companies."
What really interests me is that the people quoted in this article see China as a really credible threat. It has forced Boeing and Airbus to manufacture parts in China as well as do a lot of tech-transfer, in the hopes of building up a domestic base of technical expertise. It now looks as though China feels it has the expertise to begin the launch of a full-fledged domestic aviation/aerospace industry, thanks in part to knowledge gained from those Western companies. This just demonstrates how China is using its market size (and consequent market power) to further its own long-term ambitions. And of course, the fledgling industry is going to be supported by a lot of government money [though no mention of how much, as of yet].
See quote below:
- "Steven Udvar-Hazy, chairman and chief executive of International Lease Finance Corporation, one of the world’s top two aircraft leasing companies and one of the most influential purchasers of new aircraft, said last week that both China and Russia could develop aircraft capable of competing with the Boeing 737 and Airbus A320 families of single aisle jets within 15 years with government backing and technology gained from both companies."
posted by rawls at 12:39 PM
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