Assessing the China market

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Introduction

Sept. 30, 2015, (c) Leeham Co.: The Boeing deals announced last week with China put the country into the spotlight about its commercial aviation ambitions.

For many, the various deals announced by Boeing raise alarm bells. For most, that fire horse already left the fire station. The smoke has been billowing out of China (or maybe that's smog) for a long, long time.

Summary

  • Boeing announces 300 orders and commitments for China, though the company was vague about the details. We try to dissect what's real and what's smoke.
  • Additional deals announced by Boeing are driven by China's pay-to-play approach to business.
  • Other OEMs, suppliers also have to pay-to-play.
  • China's deals with Airbus and Boeing are only two elements of a national goal for commercial aerospace.
  • IP theft and technology transfer big concerns.

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