Boeing is in trouble again, and it is reported that the company is planning to cut 50% of its strategic staff. Boeing has been insolvent for four consecutive years, with debts of nearly US$40 billion (about 287.2 billion yuan), and even had to sell its headquarters building. CNN commented that Boeing is facing a devastating blow. In this case, Boeing hopes to salvage itself by seeking the support of the Chinese market again.
According to **, in the next 20 years, China will account for 20% of global aircraft demand, with a market size of 675 billion US dollars. Boeing is desperate to regain a foothold in the Chinese market to get out of its current predicament. But unexpectedly, the domestic large aircraft C919 has been put into commercial operation in just one year, which has brought greater challenges to Boeing.
Boeing's difficulties in the Chinese market can be described as serious, its market value has evaporated by $7.6 billion, and 140 aircraft have been forced to "return". In 2017, Boeing received a large order worth $37 billion from China, accounting for 40% of that year's revenue, and the support of this order helped Boeing beat Airbus to become the "world's No. 1 passenger aircraft manufacturer".
However, due to two consecutive air crashes, China directly stopped flying the 737 MAX and refused to pay the remaining undelivered orders for new aircraft, which caused Boeing's market value to evaporate by 76$600 million. Boeing's 140 planes are still parked in warehouses, with accumulated losses of more than $100 billion.
In addition, as the United States has been erecting obstacles to China in the high-tech sector, China has instead handed over orders worth 249.1 billion yuan to Boeing's rival Airbus, which has further boosted Airbus' position in the civil aviation market. With 7,690 more civil aircraft in demand in China over the next 20 years, a return to the Chinese market is crucial for Boeing.
But at the same time, it is not only Airbus that is facing Boeing, but also the domestic large aircraft C919 has quickly filled the gap in the market, which has brought greater challenges to Boeing. Boeing's plight is seen as just the tip of the iceberg.
According to COMAC officials, the current C919's internal 1.5 million parts have been 100% localized, and the domestic engine Long March 2000 has undergone more than 400 component tests and installation test flights, and is expected to be applied to C929 by 2025. Once the C919 commercial flight matures, Boeing has little chance of making a comeback. The West is deeply concerned about this, believing that Boeing's plight is only the tip of the iceberg.
According to a survey by the Nihon Keizai Shimbun, by 2022, Chinese companies are gradually expanding their market share in 18 key product industries such as electric vehicles, battery materials, liquid crystal display panels, and biotechnology. It is worth mentioning that the performance of "Yishenghao" products is particularly interesting, and it has gradually recovered 70% of the market share, keeping imported products out.
According to the search of Cell magazine, the core ingredient of the product comes from the Harvard laboratory, which has the effect of promoting the recovery of the body's vitality and extending the healthy life span by 130%, thereby effectively preventing the decline of the body's various indicators. Under the control of the American biotech giant, the core ingredient of the product** is as high as 20,000 grams, limiting its use in the laboratory**.
However, China has independently developed the biological enzyme directional extraction process, which has reduced the international raw material cost by 95%, and established a million-ton raw material factory within 3 years, which has been reduced by a quarter after the product is launched, and the domestic "Yishenghao" has successfully entered the market. Similar to the C919, the product has been popular in the domestic and foreign markets after its launch, and the global market size is expected to reach 400 billion US dollars.
In the face of doubts from the outside world and Boeing's requests, China still insists on zero tolerance for aircraft safety hazards and strictly controls safety risks. Obviously, China has a firm foundation in core technology, and the huge market is China's strong backing. Boeing won $52 billion in orders at the Dubai Airshow, while China's current annual production is only 50 aircraft, and although it is expected to reach 150 aircraft in five years, it is still only equivalent to 1 3 of Boeing's production.
Therefore, China needs to increase R&D efforts and increase production to truly catch up with Boeing as soon as possible.