Monday Insight – December 5, 2022

Standby! 12 December Monday Update is in Progress

Wall Street Analysts Finally Noticed.

Boeing Is Persona Non-Grata In China.

Actually, Does The China/CCP Have More Political Clout In Washington Than Boeing?

Yes, we’ve covered this earlier in the weekly Touch & Go newsletter, and in a number of Aviation Unscripted videos, but this is an issue that really is raising some questions that nobody inside the Beltway wants to pursue. This may be a dynamic that cuts across more than just our aviation sector.
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Finally, after enough red flags to decorate the Kremlin on May Day, some financial analysts have noticed that Boeing isn’t getting any traction in China.

737s All Dressed Up With Nowhere To Go. There are over 130 737Max airliners sitting in storage that were ordered by Chinese airlines but not delivered. And, chances are they never will see the skies of the Middle Kingdom. White tails with pretty paint jobs. Presumably, some or most of these are spec’d out for the intended operator, which makes selling them to another airline a challenge.

China’s is the only major nation that has not approved the Max for service. In the meantime, they have committed to hundreds of new Airbus A320 airliners, and A321s are about be added to the Airbus production line in Tianjin.

This is not news. It has been obvious for over a year, but conveniently ignored. There has been no push-back from the occupants of the White House. To have America’s number one exporter cut out of the China market does affect the US economy, yet the powers that be on both sides of the aisle have said almost nothing.

Yup. No outrage from inside the Beltway. Wonder why.

Let’s Ask The Question: Does China’s Un-elected Government Have DeFacto Friends In High Places? Nevertheless, don’t expect much pushback from inside the Beltway.

It looks like the deck may be stacked against Boeing and the people working there.

Keep in mind that there is a cheering section for the China CCP in a wide range of industries and political entities in the USA. Despite things like genocide in Xinjiang and forced organ harvesting from dissidents, or draconian shutdowns that have led to loss of life, not to mention complete responsibility for the global pandemic, a number of American business leaders have gone out of their way to laud the CCP. They have a dog in the fight – and it’s not ours.

High level congress people have indirect or family business involvement with Chinese companies. The parent company of one major network has huge investments in China. “Unbiased” reporting when hundreds of millions are at stake? Remember, every Chinese company wherever it is located is at least indirectly controlled by and benefits the thug criminal government in Beijing. No exceptions.

So, it may be too much to expect any outrage that may threaten the lucrative Chinese apple cart. Even the clown running the World Economic Forum last week lauded China as a model for the rest of the world. The fix is in, ya think? This lowers the stature of the WEF to somewhere below that of a midwestern bowling league.

Meanwhile, the fleets of 737Max airliners already in China are still parked, give or take some gadfly reports of a one-off 700 series Max making flights a few months ago.

Given the orders for Airbus machines, plus the now-certified C919 joke airliner being forced on Chinese carriers, the prognosis for Boeing in China is close to zero.

Bottom line: Boeing’s global market no longer includes China. That will have an effect on the economies of regions where the company is a major employer.

No change is on the horizon. It could threaten some lucrative rice bowl deals some politicians have with Chinese-related businesses, to the detriment of working Americans in places like Seattle and Wichita.