Boeing China Situation – Whose Pocket Is Wall Street In?
The year 2022 is not boding well for Boeing. Funny, nobody seems to have noticed.
We outlined on a recent Touch & Go newsletter, as well as on an Aviation Unscripted video, that for all intents and purposes, Boeing has been frozen out of the China airliner market. Indeed, as if to open the New Year, a Chinese leasing company just cancelled a couple of undelivered Max orders.
According to Boeing, China sales represented 25% of their global commercial airline business. And it’s gone 86. But the financial gurus following Boeing have said nothing. Nothing.
It’s starting to look suspicious. The connected whiz-kids in the Wall Street world cannot be completely oblivious to this.
Sumptin’s not right here. This is a situation that will affect the economy of the USA, not to mention what is reported to be America’s largest exporter, and silence is the word.
Airbus Is Delivering Planes In China, But Not Boeing. With the domestic economic and Covid mess created by the unelected criminal thugs running China, air travel volume in that country has dropped like a baby grand out the 8th floor window. Nevertheless, Chinese airlines have been taking delivery of A320s and A321s for months, and continue to do so.
But as for Boeing, it’s the red headed step-manufacturer as far as China is concerned. No deliveries or new orders for the 737, even though the Max is now out of regulatory jail just about everywhere, including China.
Under the Trump administration, the CCP agreed to purchase a certain amount of USA goods, including airliners.
Naturally, with what is sitting in the White House, they now find it a snap to renege on the deal. (Let’s tell it like it is, these guys apparently couldn’t tell China from a set of Melmac.)
Not Only No Deliveries, But Cancellations, Too. As noted above, deliveries of Airbus products have continued in China. But two weeks ago, Boeing got zapped again. Urumqi Airlines (for the folks playing the home game – Urumqi is the capital of Xinjiang province, where the CCP government operates forced labor concentration camps and cultural genocide) – cancelled its order for three 737-Max 8s.
But it’s not a paper cancellation… all three of these orders are already in metal. They were built over two years ago, and have been stored in Moses Lake, Washington.
The damage here isn’t just to Boeing, but to the leasing companies that own these grounded birds. Maybe they can re-market them, but in any case, they’re taking a whale of a financial hit.
A Higher Calling Than Truth: Wall Street Companies Don’t Want To Offend The CCP. This is not inconsequential to the USA economy. Boeing-related manufacturing states like Kansas, South Carolina and Washington are taking a hit. Yet there has been zero evidence of any notice taken by either the folks inside the Beltway or the supposed financial experts on Wall Street. Lockjaw.
In this situation, it’s every big company for themselves. You’re not likely to find any major financial institutions taking up for Boeing. Heck, you aren’t seeing Boeing taking up for Boeing.
Reason: it’s not nice to offend mother CCP, the unelected thugs running China. Do so, and your access to the China market will get choked. So we’re not likely to see any giant red flags from any major financial firm regarding what’s going on with Boeing in China. They typically in one way or another have dogs in this fight.
The media is not clear of culpability. By a long shot. At least one major USA network is making lots of investment in China in a huge amusement park. Yup, that sure won’t affect their reporting, right? Then there’s the issue of getting a media source’s entire China bureau booted out of country for as much as an untoward headline.
Or, having staff kidnapped, captured and locked inside China, literally held up for ransom. There are estimated to be over 400 foreign business people in exactly this situation today. (Fact – want details, hit the contact button.)
The second issue that allows this outrage is simple. That’s the current occupants in the White House are completely incompetent in standing up to the criminals running China. The track record in the last 12 months is incontrovertible. Demanding that Xi Jinping and his neo-Mafia crowd adhere to prior agreements to buy US goods is out of the question.
End of discussion. It’s a situation the CCP has won. They are being permitted to call the shots. Airbus is now the official supplier of airliners to China.
The employees at Boeing and its suppliers – whose jobs are at stake – are on their own. There’s nobody standing up for them.
Or, when it comes to dealing with the criminals running China, standing up for America.
And That Brings Up The Olympic Third Rail
In the past week, thousands of airline flights have been cancelled. Hundreds of thousands of families have had their holiday plans shattered.
The main reason is the rapid spread of the latest variant of the CCP-created corona virus. The virus that has killed millions of people… the virus that the CCP knew in 2019 was spreading in Wuhan and for political reasons intentionally not only covered it up, but actually held crowd-heavy events to “prove” nobody had to fear that it was contagious. They lied. They covered up. And the virus went global, spread and is mutating. The torpedoing of the air transportation system as a result of the virus is just the latest impact of their actions.
Those are facts. The truth. No need for the controversy of where the virus originated (although that’s no longer much in doubt.) No matter. It was there, spreading rapidly and they criminally tried to cover it up.
Add to this that the same CCP that started all this is engaging in world-recognized cultural genocide in Xinjiang, in stamping out democracy in Hong Kong, and preparing its military to invade democratic Taiwan. All this and more at the hands of the very government and individuals that will be put on a global pedestal and lauded in just four weeks.
One month from today, the IOC is holding what they are calling the 2022 Winter Olympics in China. There are big companies sponsoring the events… networks, airlines, food companies, global businesses… all soooo proud to be supporting the spirit of the Olympics, even though it is whitewashing and glorifying the most egregious regime since Adolf Hitler.
To each its own. But the fact remains that the 2022 Winter Olympics is showcasing a vile regime, and instead of holding them responsible, there are companies that will be parties to an event that will be glorifying the perpetrators of the worst attack on human life in history. Silence is a message.
The sponsors of this event should rethink their moral compass.
This Week’s Aviation Unscripted Video…
Click here... we are covering the 5 top observations for 2022.
They all point to one general trend… the air transportation system is changing, and while it’s going to be disruptive, it’s all positive.
And we want to thank all the folks accessing this channel, on Rumble.com and other access points, too.