China is threatening to punish the USA over recent political disputes by favouring Airbus over Boeing when approving new purchases for the country's airlines.
State-run media reported in May that Airbus "faces tremendous business opportunities in China" - the world's fastest-growing aviation market - as a result of the tensions, which are expected to "take their toll on Boeing".
"Chinese officials and experts did not rule out the possibility that tensions in the relationship would affect business ties between the two nations, as politics and business could hardly be handled separately," said an official Chinese news report. "Ups and downs in the Sino-US relations over the past two decades have typically shown that. And in the case of Airbus and Boeing, any major events between China and the US would affect the balance that the Chinese Government holds in deciding whose aircraft it is going to buy," it said.
Tensions have been high since a US spy aircraft collided with a Chinese fighter over the South China Sea on 1 April. China is also upset about the sale of US weaponry to Taiwan, which it considers a renegade province.
It is unclear if recent orders by Hainan Airlines for Boeing 767-300ERs and by China Southern Airlines for Boeing 747-400 freighters will be affected. A number of Chinese carriers are meanwhile requesting government approval to order Boeing 737s.
Airbus may gain in the short term at China Southwest Airlines, which is assessing the Airbus A319 and Boeing 737-700 for new intra-Tibet services. Airbus is also forging industrial ties in China, and recently handed over extra A320 wing work to Chinese firms.
Source: Airline Business
