Boeing sells 300 jets to Chinese airlines, plans new plant in China

[CHamilton]

Boeing sells 300 jets to Chinese airlines, plans new plant in China

Boeing has reportedly solidified a deal to sell 300 jets to China. But the deal, which is worth billions and will add significantly to the company's already record backlog, comes with a caveat: Boeing (NYSE: BA) will open a new facility in China.

 

[jis]

Following in the footsteps of Airbus. Expect similar inIndia too in the coming years.

 

[Shanghai]

I wonder if the contract will be in US Dollars or Chinese Yuan? Who will manage the foreign

exchange risks?

 

[Bob Dylan]

I wonder if the contract will be in US Dollars or Chinese Yuan? Who will manage the foreign

exchange risks?

They can use their new BOA AGR MC, no foriegn exchange charges! LOL

**Your old stomping grounds Dick!**

 

[Devil's Advocate]

I wonder if the contract will be in US Dollars or Chinese Yuan? Who will manage the foreign

exchange risks?

Why would there be an exchange risk with Chinese people building Chinese aircraft with Chinese parts for Chinese airlines?

 

[jis]

Exchange risk for Boeing will be in repatriating profits in case they want to pay the large U.S. Tax on such

 

[Devil's Advocate]

Exchange risk for Boeing will be in repatriating profits in case they want to pay the large U.S. Tax on such

The US could cut the corporate tax rate in half or even down to a quarter of the current rate and they still wouldn't repatriate.

 

[railiner]

Good for Boeing in the short run, but what happens when the Chinese learn Boeing's trade secrets and then build their own copies later?

I really hate to see high technology US companies exporting their technology....they should only export finished products, IMHO.

Yeah, I suppose if they don't, then Airbus or someone else will.....oh well.........

 

[Swadian Hardcore]

I have to agree. Even though I'm Chinese, I don't even trust the Chinese. They definitely like to use dishonorable tactics, more so than the Americans. This is probably caused by a mixture of overpopulation, politics, and culture.

I prefer both Airbus widebodies and narrowbodies over Boeings.

 

[Bob Dylan]

Narrow bodies over Boeing's "Heavies?"

Really???

 

[CHamilton]

Chinese airline exec: 'Dreamliner was your dream.' We want to build more of our own airplanes

 

[gaspeamtrak]

Exactly what railiner said!!!

Look at what China did with those high speed trains I think they bought from Bombardier. They buy it once from you, take it apart,steal the technology (sp) change a few things then try and sell it back at half the cost to you and put your factories and workers out of jobs... When will they learn???? :angry2: :angry2: :angry2:

 

[jis]

If you happen to learn that Bombardier had signed a technology transfer contract as did Siemens, would that change your impression of what China did?

Apparently things were not as formally agreed to between the Chinese and the Japanese though from what I hear.

There are myriads of such contracts between these companies and Indian Railways too. Just because they are building things derived from a licensed technology base does not mean they are stealing.

 

[Devil's Advocate]

Good for Boeing in the short run, but what happens when the Chinese learn Boeing's trade secrets and then build their own copies later?

I really hate to see high technology US companies exporting their technology....they should only export finished products, IMHO.

Yeah, I suppose if they don't, then Airbus or someone else will.....oh well.........

&

Exactly what railiner said!!! Look at what China did with those high speed trains I think they bought from Bombardier. They buy it once from you, take it apart,steal the technology (sp) change a few things then try and sell it back at half the cost to you and put your factories and workers out of jobs... When will they learn???? :angry2: :angry2: :angry2:

More like when will Americans realize that Boeing is in on the game? Boeing is just as happy to be moving production to a cheaper labor market as China is to bring production home. When they say there will be no layoffs what they mean is that it takes time to shift production overseas. In due time those jobs will move in greater and greater numbers. Just like Sam Walton's treasonous doublespeak.

 

[railiner]

Well, selling a finished product, and then have a customer "reverse-engineer" it, cannot be prevented, if the customer does not believe in intellectual property (patent) rights.

But if you build a manufacturing plant there and employ their workers, they not only can learn to copy your product, but any trade-secret efficiencies in the production process as well. The latter can be even more important in some cases, as reverse-engineering may not make that process apparent.

 

[rickycourtney]

I want to make a very important point here...

Boeing is building what's called a "delivery center" in China, it's not a factory.

Currently the 737 is built at the Boeing Renton factory, but for a multitude of reasons the fully assembled jets are flown to the Seattle delivery center at Boeing Field where customer specific work is completed (things like installing interiors and painting) before delivery.

With this deal the 250 737 will still be built at the Boeing Renton factory, but instead flown to a delivery center in China.

The 50 wide body jets (747/777/787) purchased by Chinese airlines will be built at the Boeing Everett factory*, which handles customer specific work on site. The jets will be delivered in Everett*. (*787 jets could also be built at the Boeing South Carolina factory.)

The Chinese will learn nothing more about building these airplanes than they could learn by reverse engineering the planes they currently own.