A little news tidbit: all the world's major aircraft companies are slowly being strong-armed by the clever Chinese communists to move their technology and industry to China. The USA wants China weak and dependent but this is a silly idea considering that we are the weak, dependent party here.
By William Mellor and Andrea Rothman
The battle for China's skies between Airbus and Chicago-based Boeing, its archrival, will determine which aircraft maker achieves global leadership. It's now neck and neck. Last year, Airbus delivered slightly more planes to the world's airlines: 434 to Boeing's 398. Boeing booked more orders for future delivery: 1,044 to Airbus's 790.
``China is the fastest-growing aircraft market in the world by far,'' says Neil Sims, a project manager who oversees work at the Xi'an Aircraft factory on behalf of Toulouse, France-based Airbus. ``The Chinese have said to us, 'Give us some of your technology, and we guarantee we will purchase some of your aircraft.' We have to get our share of the cake.''
The hope has always been to balance trade with China by selling Boeing or Airbus planes. As my blog has carefully detailed for several years now, the Chinese plan is to make all auto, boat and airplane manufacturing in China. They are well on the way in the ship building industry and catching up in the auto industry and are very carefully now taking over the aerospace industry.
They may also be giving birth to a new competitor that will give them a run for their money. ``Airbus and Boeing are bartering their jewels for short-term advantage,'' says Ted Fishman, Chicago- based author of China, Inc.: How the Rise of the Next Superpower Challenges America and the World (Scribner, 352 pages, $26). ``It's going to come back to haunt them.''
Chinese officials make no secret of their goal to build a domestic aerospace industry that can compete globally. ``It's only a matter of time before China catches up with U.S. and European plane makers because we have started the campaign,'' says Luo Zhenan, vice secretary-general of the government-regulated China Aviation Industry Chamber of Commerce.
I am glad Bloomberg news has noticed this! It is now plainly obvious. The wrangling over the last series of contracts were conducted not by businesses in China negotiating with American companies but rather by Hu and Wen and their highly polished, very focused diplomatic team negotiating with a crew of thoroughly corrupt politicians in America, some of whom, like the Bush clan, working for the Chinese!
They came up with a deal that didn't wholesale ship off our jet technology and factories directly to China, that might topple our traitorous government. So they took the crab-sideways route knowing full well where the destination lies.
The ultimate plan is to get Boeing into a large enough contract and then wait a while and then make a nifty deal: they transfer the factories wholesale to China and get the planes cheap and can keep the profits of this contract while it is finished by Chinese workers. This has to be introduced very slyly, at least, they hope.
I have chatted about this plan before. It is very obvious now. Note this article:
US$6b deal for 50 Boeing jets in sight......Airbus hopes to clock up some 200 firm orders by the end of the year for its A350 whilst it is also pushing hard its A380 super-jumbo, of which it has sold five to China Southern.
Boeing has so far registered 261 orders for its 787, while Airbus currently only has 10 firm orders for the A350, which is expected to be in service by 2010.
To cater to domestic needs, China is also keen to build its own short-haul aircraft and so wean itself off dependence on Airbus and Boeing, the world's top major commercial aeroplane builders.
China is trying to develop a market for domestically built 70-to-90-seat regional jets.
The hint is there! Whoa. They finally said it! More: the plan isn't to confine themselves to their own domestic market. No way in hell. Imagine if they have clones of our jets only they cost one third to build? Hmm? Guess what.
It always gives me great pleasure to read my past postings when I am right. And on this topic, I have kept track of what really matters and my predictions have been spot-on. This is not true of many economic writers in Mainstream media. There are some economic bloggers out there who have an excellent record but they are mostly ignored even though they are top professors, etc.
And I am nobody which is OK, I don't control things, I just comment on them.
Here is another Boeing article from several years ago. Nothing has changed and the greased rails allow the decimation of our native jet-building industry to silently move forwards at increasing speed. This is, of course, all connected to our refusal to balance our budget, cut our spending on foreign goods and the need to export inflation by outsourcing like crazy. Jets will be much cheaper, made in China, until, like Japan before us, they dominate the industry, then we will pay MORE for better Chinese aircraft while our industry rots working for the Pentagon which means inefficient, overdesigned and underperforming. Not to mention, hideously expensive.
And that is the key here: our budget deficit is soaring to the heavens on the wings of military procurement spending andn our economy rests on a foundation of wild military misspending and this is being paid for by IOUs collected from our two main rivals in Asia: Japan and China. And both are decimating our industries and we are desperately trying to not escape this trap but instead, make it last a little bit longer.
Defence firm EADS has approved an eagerly-awaited restructuring plan for its Airbus subsidiary, likely to result in thousands of job losses.
Its board of directors "unanimously" agreed to the revamp, and is expected to outline the planned changes on Wednesday after talks with unions.
Delays to its flagship A380 superjumbo have fuelled talk of major cost cuts.
All companies when cost cutting run off to Beijing for help. And very cheerfully, the Chinese provide help and then voila! The bottom line turns from red to black and the craven executives and shaky share holders get richer and pay no taxes and this particular flat earth-free trade merry-go-round continues its own ups and downs alongside the military disaster merry-go-round and these are connected: Europe has chosen to follow the USA empire down the rabbit hole. They didn't defy us, they played along with us and now Russia is very angry with them about all this and is punishing them via trade with the cancellation of Airbus contracts.
And Russia will buy jets from China in due time. And probably the Chinese will build factories in Russia so both can dominate the world trade in this way. This is inevitable.