Boeing one of the leading designer and manufacturer of airplanes has recently signed deals with three Chinese firms such as ICBC Financial Leading Co., CDB Leasing Co., and other commercial airlines to sell and lease around 300 aircrafts combined. The company is also planning to set up an aircraft plant in China which makes it the first U.S. firm to seal a business tie-up with present Chinese President Xi Jinping during his U.S visit. The deal from China is touted to worth tens of billions of dollars and is collectively the largest order that Boeing has received from China. The company is locked in a fierce battle for Chinese markets. The new plant will help Boeing gain an edge over Airbus to capture one of the largest commercial aviation markets such as China. In its latest forecast for commercial aircrafts market Boeing estimates China’s demand for commercial aircraft to grow at 5% in August and will need 6,330 planes over the next 20 years. The company also signed a collaborative document Commercial Aircraft Corporation of China (Comac) to build its aircraft completion center for its 737 passenger jets.
Boeing estimates that number of passengers travelling to and fro from China is estimated to triple by 2034 to 1.3 billion which is 0.1 billion greater than the U.S. The significant investment from Boeing in China and the rise in air passenger frequency presents an opportunity for interiors manufacturers to enhance their foothold in the country and gain a competitive advantage over the competitors. The Chinese government through this agreement aims to develop the aircraft and interiors manufacturing companies in China to understand the technology industry in China and become a leading country in the manufacturing of commercial aircrafts.