The Booty Report

News and Updates for Swashbucklers Everywhere

Arrr, matey! The treacherous peril of conductin' trade in China be like navigatin' through a sea of scallywags!

2023-12-18

Arrr, matey! Boeing be a prime concern for Xi! Them commercial planes be the finest treasure America offers to China and the seven seas! But Beijing be yearnin' to turn the tide and snatch it all away, arrr!

Boeing CEO Stanley Deal paid $40,000 to have dinner with Chinese President Xi Jinping, despite knowing that Xi's goal is to displace Boeing. Xi wants China to become a major manufacturing power, and to achieve this, he aims to lower the global market share of American companies. Boeing is a prime target for Xi, as commercial planes are America's largest export to China. However, instead of resisting Beijing's efforts, Boeing and other companies continue to court Chinese markets and engage in joint ventures with Chinese counterparts. This is seen as playing Beijing's game. A case in point is the C919 passenger jet, which is built by Chinese company COMAC and is a direct competitor to Boeing's 737 MAX. COMAC constructed the C919 using stolen Western business data. While some argue that the C919 is not yet capable of challenging Boeing's dominance, China's capabilities are rapidly improving. Other industries, such as solar panels and electric vehicles, have already seen American firms lose their edge to Chinese competitors. Non-Chinese airlines in the Indo-Pacific are also starting to purchase COMAC planes. The danger of doing business in China lies in the possibility that American companies will render themselves obsolete by cooperating with the regime. Policymakers must protect America's national interest by passing laws that protect and strengthen the country's edge in advanced manufacturing. This may include targeted investment in domestic production, tighter export controls, and greater restrictions on inbound and outbound investment. These measures are necessary to prevent Beijing from emerging victorious and to safeguard the long-term interests of American companies and shareholders.

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