Just days ahead of President Trump’s scheduled visit to China, the American the Federal Aviation Administration and the Civil Aviation Administration of China, or CAAC have signed a pact that allows for selling China-made airplanes and parts to the U.S. and other countries, as reported by the Wall Street Journal.
The agreement (which has been in talks for years) advances Beijing’s hopes of becoming a global supplier of airplanes, a market currently dominated by Boeing and Airbus SE. China is hoping to put out an airplane that competes with Boeing 737 and Airbus A320 jets and seats around 180 passengers. So far the plane has 300 buyers, but they are largely from China.
Before the pact was signed, all American airplane parts and products were available for sale and use in China, but only a very few Chinese products were eligible for use in the US, including doors and rudders for Boeing. Now, complete Chinese airplane products can be sold in the US under the terms of the agreement.
Boeing is on track to open a new facility in near Shanghai in partnership with Chinese manufacturer Comac. And Airbus already partners with China-based brand for some of its airbus and airjet products.
Boeing Chief Executive Dennis Muilenburg says that the new administration is partly responsible for the new agreement, as it has revised its views on China. According to Muilenburg, domestic jobs are linked to work carried out in China and the airplane industry recognizes that the new pact both opens new opportunities even as it creates new competition.
However, the FAA stresses that the Chinese products will only be available after a validation process, which is outlined in the agreement. This differs from similar agreements that the FAA has with Europe, Canada and Brazil.
[Image Source: Wikimedia]