BusinessWeek ONLINE: Boeing Order with Beijing for 70 New Jets Could Be In Jeopardy If US-Sino Tensions Escalate

Order Valued at Over $3 Billion Represents 6% To 10% of Potential

Total Sales for Jetmaker



Apr 20, 2001, 01:00 ET from BusinessWeek ONLINE

   NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Boeing's
 quarter-century effort to cultivate trade ties with China is under threat once
 again. The jetmaker's executives are fretting that more than 70 new commercial
 jet orders from China could be in jeopardy if tensions between Washington and
 Beijing escalate rather than cool down after the recent spy-plane mishap,
 reports BusinessWeek Online.
     The rising U.S.-Sino tensions come at a delicate time for the Seattle-
 based airplane giant, as it tries to complete the first significant sale with
 the Chinese in more than three years. The total order, which has not been
 disclosed publicly, is valued at more than $3 billion. It could represent from
 6% to 10% of potential total sales for this year, depending on its actual
 size. Though other factors, such as overall worldwide orders, will determine
 the actual magnitude of the China order, it's a sizable number in the low-
 volume, high-cost commercial airplane business.
     Boeing officials are concerned that the Civil Aviation Administration of
 China (CAAC), which approves purchases on behalf of the country's 33 carriers,
 could nix the deal. For now, a CAAC official in Beijing denies any retaliation
 is in the works: "As our Trade Minister said, trade will not be hurt." But
 adds Boeing Deputy Vice-President Bruce Dennis: "We're very concerned and are
 watching the situation closely."
     Boeing CEO Philip M. Condit says he's confident that the current tensions
 between Washington and Beijing won't fundamentally change trading
 relationships. But he adds: "We are a high-visibility player, and that always
 puts us on the front lines."
     An expanded version of the report is currently posted to BusinessWeek
 Online at http://www.businessweek.com/bwdaily/index.html.
 
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SOURCE BusinessWeek ONLINE
   NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Boeing's
 quarter-century effort to cultivate trade ties with China is under threat once
 again. The jetmaker's executives are fretting that more than 70 new commercial
 jet orders from China could be in jeopardy if tensions between Washington and
 Beijing escalate rather than cool down after the recent spy-plane mishap,
 reports BusinessWeek Online.
     The rising U.S.-Sino tensions come at a delicate time for the Seattle-
 based airplane giant, as it tries to complete the first significant sale with
 the Chinese in more than three years. The total order, which has not been
 disclosed publicly, is valued at more than $3 billion. It could represent from
 6% to 10% of potential total sales for this year, depending on its actual
 size. Though other factors, such as overall worldwide orders, will determine
 the actual magnitude of the China order, it's a sizable number in the low-
 volume, high-cost commercial airplane business.
     Boeing officials are concerned that the Civil Aviation Administration of
 China (CAAC), which approves purchases on behalf of the country's 33 carriers,
 could nix the deal. For now, a CAAC official in Beijing denies any retaliation
 is in the works: "As our Trade Minister said, trade will not be hurt." But
 adds Boeing Deputy Vice-President Bruce Dennis: "We're very concerned and are
 watching the situation closely."
     Boeing CEO Philip M. Condit says he's confident that the current tensions
 between Washington and Beijing won't fundamentally change trading
 relationships. But he adds: "We are a high-visibility player, and that always
 puts us on the front lines."
     An expanded version of the report is currently posted to BusinessWeek
 Online at http://www.businessweek.com/bwdaily/index.html.
 
                           MAKE YOUR OPINION COUNT --
          Click Here http://tbutton.prnewswire.com/prn/11690X51552623
 
 SOURCE  BusinessWeek ONLINE