Though it is only touted as a rumor and Boeing China remains silent on the subject, the so-called "US$2 billion order of 30 Boeing aircraft" is still being spread, stirring controversy in the aviation sector.

It is said that the potential Boeing buyers include the Shandong Aviation Group and Xiamen Airlines Company, who show interest in the Boeing 737 model. The Shandong Aviation Group plans to buy seven Boeing 737 planes to explore the Shandong-Korea and Shandong-Japan flight courses, while the Xiamen Airlines is expected to purchase five single-aisle Boeing 737 to increase the capacity of its Xiamen-Malaysia flights. Additionally, the China Aviation Group will also order five Boeing planes. Other potential buyers are not revealed yet.

A senior official of the Ministry of Commerce said that the Chinese aircraft purchasing mission will set out for the United States soon. By now, there is no detailed information about the value and categories of purchasing yet. Each company will independently decide the value and categories, and the Ministry of Commerce has no solid prescription for the enterprises, he said.

According to the Chinanews.com, Vice Minister of Commerce Wei Jianguo said that a purchasing commission may leave for the United States next week or within this month in order to balance Sino-US trade. Wei said the purchasing mission, which is composed of China's major import companies, will divide into several teams of different industries. The purchase will focus on electromechanical equipment and agriculture products. As far as the quantity of the purchase is concerned, he said, it will be decided according to the prices of the specific commodities. He gave no information about the rumor that China will buy 30 Boeing planes.    

Wan Jifei, chairman of the China Council for the Promotion of International Trading (CCPIT), said China needs to import high-tech products in the areas of chemistry, electronics, aviation, astronautics and others, which have high values and additional values and can thus help reduce China's surpluses in the Sino-US trade.

Foreign media reported that China's huge purchase will help solve the trade disputes between the two countries and also provide a positive atmosphere for Premier Wen Jiabao's visit to the United States next month.   

Boeing still takes lead in China's aircraft market

The competition for the Chinese market between Boeing and Airbus is still going on. In the past, each of the two companies had its equal share, but the situation has changed since August 2003, when Airbus surpassed Boeing in the number of delivery. Furthermore, it owns a reserved order of 1,543 jets, 400 more than that of Boeing.

According to related data, the market share of Boeing passenger jets dropped 17 percent in the third quarter. This year, Airbus has obtained 263 orders, while Boeing has only 169. Airbus sets a goal of offering 300 jets this year, which means it will surpass Boeing for the first time, if achieved.

However, Boeing still takes the lead in the Chinese market by owning 60 percent market share of all the 600 business jets flying in China's sky. An officer of Boeing China noted that they will not make any concession in the world's fastest-growing market, and besides Boeing 737, they plan to sell Boeing 7E7 to China so as to compete with Airbus's jumbo A380.

(China.org.cn November 12, 2003)