support@headlinenews360.com
US-China Trade War: America-China trade war is deepening every passing day. The big companies of both countries are suffering the brunt of Xi Jinping and Donald Trump’s enmity. Recently, a tough decision of China has once again put America’s plane manufacturer Boeing in trouble.
In fact, China has instructed its airlines not to take new aircraft from Boeing, causing a huge decline in the company’s shares on Tuesday. It is believed that this decision has been taken due to the US-China Trade War.
What is the whole matter?
According to a report, China has stopped its airlines from taking delivery of any new aircraft in Boeing. There was no official statement from China, but the report of Bloomberg has given air to this news.
Why does Boeing feel a shock?
Boeing is the largest exporting company in the US and employs around 150,000 American employees. But the company has been struggling for the last 6 years and the company has faced a loss of $ 51 billion since 2018. The special thing is that two-thirds aircraft of the company are sold to international customers, the largest market is China.
Boeing estimates that China will need about 8,830 new aircraft in the next 20 years, but after this decision, Boeing may suffer a lot from this market.
What is the only trade war?
Boeing’s problem is not just due to business stresses. The company had to ground its best -selling aircraft 737 Max after two deadly accidents in 2018 and 2019. Due to this, China did not allow these aircraft to return to service for a long time, while other countries brought them back to flight in 2020.
Why is delivery necessary for Boeing?
Boeing gets a large share in payment only after delivery of the aircraft. That is, till the delivery is not done, there will be no earning. According to the company, by the end of 2024 it has 55 aircraft in stocks, most of which were for the customers of China and India, but now it has become a burden on the stock company due to stopping delivery.
New battle of trade war
After US President Donald Trump imposed tariffs up to 145 per cent on Chinese products, China also retaliated and taxed US products up to 125 per cent. Their sales in China have almost become impossible due to so much tax on Boeing’s expensive aircraft. According to a CNN report, in 2017 and 2018, Boeing took orders for 122 aircraft from China, while in the last 6 years it has received only 28 orders, that too most of the freight aircraft.
Also read: Us China Trade War: Between Trade War, China showed power … Another big trouble standing for America
(Tagstotranslate) Us-china trade war
Source link
