Boeing growing bigger in China — for now
In the battle for biggest commercial jet manufacturer on the international market, United States-based Boeing is locked in a heated battle with Europe’s Airbus for top of the friendly skies. While the battle in America all but belongs to Boeing, the biggest prize up for grabs these days is the massively exploding market in China. Both Boeing and Airbus are betting big on this expansive market in the world’s most populous country. And Boeing is investing big in all kinds of resources, including financial and human. The company’s work in China employs more than 150,000 people, a huge number that may surprise some Americans curious or suspicious about the increasingly global marketplace. And that 150,000 is the floor of a building that has yet to define a ceiling. Boeing Vice Chairman Ray Conner said the number of jobs is expected to continue to grow and the Chinese economy continues to expand, and Boeing amps up the competition on Airbus. So, you can bet U.S./China relations are a big issue for Boeing. In 2015 alone, according to CNN, the company shipped 500 737 jets … about 125 of them went to China to serve a
growing Chinese middle class, which at last count, already outnumbers the entire population of the United States. No wonder Boeing and many other American companies want to get in on that action. If U.S. relations go south, Boeing is just one of the first American companies that could suffer. And those 150,000 gainfully employed Americans? They could suffer even more. These stakes call for a comprehensive PR and trade relations strategy with China that includes aspects of consumer, corporate, and political engagement. Each of these layers must be on point for the system to work, and for two of the largest economies in the globe to get the most out of a mutually beneficial relationship. While a soured relationship with the U.S. and, subsequently, American enterprise, could frustrate China, there are other players that could fill the gap now closed by American companies such as Boeing, Apple, Ford, and General Motors. European manufacturers are ready and willing to step in and grab any market share American business gives up, no matter what the reason. It will take more than smart business for Boeing to protect their hard-earned market share. They will need savvy political and consumer PR to navigate the often perilous waters for international companies looking to do business in China. A supportive domestic government is only the first step. Phil Shawe is a CEO based in New York.