Connect with us

Business

Boeing’s China problem gets worse as Beijing sanctions top exec for Taiwan arms sales

China sanctioned Boeing’s top defense executive just as the long-held ties between the U.S.’s top airplane maker and the world’s largest aviation market appear to be fraying.

Sanctions were announced on Friday against Ted Colbert, CEO of Boeing Defense, Space and Security, and Gregory Hayes, chairman and CEO of Raytheon Technologies, in retaliation for Boeing and Raytheon selling $1.09 billion in weapons to Taiwan. As part of the purchases, Taiwan bought $355 million worth of Boeing’s Harpoon missiles and $85 million worth of Raytheon’s Sidewinder missiles.

The U.S. government had announced the arms sales last week, and said they were necessary for Taiwan to “maintain a sufficient self-defense capability” amid rising military pressures from Beijing.

Beijing explained the reasoning for the sanctions on Friday.

“China firmly opposes and strongly condemns the sales,” Mao Ning, spokesperson for the China’s ministry of foreign affairs, said at a press conference. “The arms sales gravely undermine China’s sovereignty and security interests, and severely harm China-U.S. relations and peace and stability in the Taiwan Strait.”

The Boeing Company is the parent firm of both Boeing Defense, Space and Security, a defense contracting unit, and Boeing Commercial Airplanes, the division that makes passenger airplanes.

Boeing did not respond to Fortune‘s request for comment on the sanctions and their effects on its China business.

Airplane sales

Boeing has a 50-year-long history of selling planes in China and Boeing jets account for roughly one-half of China’s passenger aircraft fleet. In 2018, China accounted for 22% of Boeing’s aircraft revenues, Boeing’s second largest market behind the U.S., which made up 29% of the firm’s revenues. But that close relationship has become strained.

China was the first country to ground Boeing’s top-selling 733-MAX airplane in 2019, when a faulty design in the model contributed to two airplane crashes. It was also among the last countries to clear the airplane model for the skies last December, and the Civil Aviation Administration of China, the country’s airplane regulator, still has yet to clear Chinese airliners to receive new deliveries of the aircraft.

China has “lost confidence” in Boeing and its B737 Max jet due to strained U.S.-China relations and 737-MAX crashes, the state-owned newspaper The Global Times wrote in July.

Boeing, meanwhile, has reportedly built up a backlog of 120 737-MAX airplanes that are destined for the Chinese market since China cleared the airplane model for the skies last December. But Boeing appears to be giving up on being able to send them to China anytime soon, announcing last week that they are reselling some of those planes to other countries amid the hold-up in China.

“We have deferred decisions on those planes for a long time [but] we can’t defer that decision forever,” The Boeing Company’s chief financial officer Brian West recently said at a conference hosted by Morgan Stanley. “So, we will begin to re-market some of those airplanes. They were otherwise earmarked for our Chinese customers.”

Boeing’s chief rival Airbus, meanwhile, announced in July that China’s top three carriers ordered 292 new A320 jets for $37 billion, signaling China’s preference for the A320 airplane over Boeing’s 737-MAX. China’s state-owned COMAC is also set to soon begin deliveries of its long-awaited C919 jet, which will further shrink Boeing’s market in China.

Boeing lamented in July that years of rising U.S.-China tensions, a trade war, and increased pressures over Taiwan has hurt the airplane giant’s business in the country.

“As a top U.S. exporter with a 50-year relationship with China’s aviation industry, it is disappointing that geopolitical differences continue to constrain U.S. aircraft exports,” a Boeing spokesperson said in July.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

Source link

Continue Reading
Advertisement

Business

Accenture integrates with Toshiba to provide consulting services to drive emission reductions

Accenture integrates with Toshiba to provide consulting services to drive emission reductions

Source link

Continue Reading

Business

Santos gets $1.4B offer for PNG LNG stake from Papua’s state oil company (OTCMKTS:STOSF)

posteriori

Santos (OTCPK:STOSF) said it received a binding conditional offer from Kumul Petroleum Holdings, Papua New Guinea’s national oil and gas company, to buy a 5% interest in the PNG LNG liquefied natural gas project for US$1.4B plus ~$300M in project finance debt.

Santos (OTCPK:STOSF) said Kumul paid $55M to be held in escrow to secure the offer, which will remain open for acceptance until December 31 and is conditional on Kumul obtaining waivers on some pre-emptive rights by other PNG LNG project partners.

With the sale of a 5% stake, Santos (OTCPK:STOSF) would own 37.5% of the project, still ahead of operator Exxon Mobil (NYSE:XOM) with 33.2%, while Kumul Petroleum would own 21.8%, with the remaining shared between Japan’s JX Holdings and Papua New Guinea’s state-owned Mineral Resources Development Co.

Santos (OTCPK:STOSF) became the largest shareholder in PNG LNG, Papua New Guinea’s largest resource project, with its takeover of Oil Search Ltd. last year.

Source link

Continue Reading

Business

U.S. steel industry activity rate slides to lowest since January 2021 (NYSE:NUE)

lyash01/iStock via Getty Images

U.S. raw steel production fell 0.6% to 1.683M net tons in the week ended September 24 while the capability utilization rate slipped to 76.4%, its lowest rate in 20 months, according to the latest weekly report from the American Iron and Steel Institute.

Adjusted YTD raw steel production through September 24 totaled 66.418M net tons at a capability utilization 79.6%, down from the same period last year when 69.208M net tons were produced at a capability utilization of 81.0%.

Potentially relevant tickers include (NYSE:X), (NYSE:CLF), (NYSE:NUE), (STLD), (SLX)

The AISI also reported the U.S. imported 2.51M net tons of steel in August, including 2.084M net tons of finished steel, down 6.2% and 8.4% Y/Y, respectively, from July.

YTD total and finished steel imports are up 8.8% and 28.7%, respectively, compared with the same period in 2021.

Nucor (NUE) recently warned it expects Q3 earnings of $6.30-$6.40/share, well below Wall Street estimates.

Source link

Continue Reading

Facebook

Latest

Modi urges environment ministers to give maximum boost to circular economy Modi urges environment ministers to give maximum boost to circular economy
National4 days ago

Modi urges environment ministers to give maximum boost to circular economy

It was inaugurated when I became the Prime Minister. A huge amount of money was wasted due to this delay....

BJP MP Janardan Mishra cleans the school toilet with his hands, shared the video on Twitter BJP MP Janardan Mishra cleans the school toilet with his hands, shared the video on Twitter
National4 days ago

BJP MP Janardan Mishra cleans the school toilet with his hands, shared the video on Twitter

When the MP saw that the toilet of the center was very dirty, it was not cleaned, he decided to...

Pilot started lobbying for the post of CM, indicating new responsibility from high command Pilot started lobbying for the post of CM, indicating new responsibility from high command
National4 days ago

Pilot started lobbying for the post of CM, indicating new responsibility from high command

Pilot will now meet Congress interim president Sonia Gandhi. Pilot said that Sonia's decision has to be accepted by everyone....

Indian e-commerce platform Meesho is paying attention to the mental state of its employees Indian e-commerce platform Meesho is paying attention to the mental state of its employees
Business4 days ago

Indian e-commerce platform Meesho is paying attention to the mental state of its employees

The e-commerce platform has announced an 11-day companywide break from October 22 to November 1. Well, this is not the...

IPhone 14 can detect car crash, you also know what is the news IPhone 14 can detect car crash, you also know what is the news
National4 days ago

IPhone 14 can detect car crash, you also know what is the news

During the experiment, the crash detection feature was activated within 10 seconds of the accident. After detecting a crash, the...

Tata Consultancy Services (TCS) has ended the practice of work from home, you also know Tata Consultancy Services (TCS) has ended the practice of work from home, you also know
Business4 days ago

Tata Consultancy Services (TCS) has ended the practice of work from home, you also know

“Senior TCS leaders are working from TCS offices for some time and our clients are also visiting TCS offices Your...

NIA raided 93 locations of PFI, arrested 106 members, know the whole matter NIA raided 93 locations of PFI, arrested 106 members, know the whole matter
National4 days ago

NIA raided 93 locations of PFI, arrested 106 members, know the whole matter

This action of NIA and ED is going on in Uttar Pradesh, Kerala, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Assam,...

TMC leader takes a jibe at Shubhendu Adhikari, I am a man, CBI-ED can't even touch me, know the whole matter TMC leader takes a jibe at Shubhendu Adhikari, I am a man, CBI-ED can't even touch me, know the whole matter
National4 days ago

TMC leader takes a jibe at Shubhendu Adhikari, I am a man, CBI-ED can’t even touch me, know the whole matter

TMC wrote on its Twitter account, BJP's 56 inch chest model has been busted today. After this, party MP Locket...

If Gehlot becomes the president, he will have to leave the CM's chair, know what Rahul said If Gehlot becomes the president, he will have to leave the CM's chair, know what Rahul said
National5 days ago

If Gehlot becomes the president, he will have to leave the CM’s chair, know what Rahul said

On the question of objection to the name of the pilot, Gehlot said, 'I do not discuss anyone's name and...

India will now find other options for weapons and oil, will reduce its dependence on Russia India will now find other options for weapons and oil, will reduce its dependence on Russia
Business5 days ago

India will now find other options for weapons and oil, will reduce its dependence on Russia

Let us tell you that the relations between Russia and India are old. Although, Relations between India and America have...

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.