logo
China-US jet engine deal to boost C919 production, Comac's EU market ambitions: analysts

China-US jet engine deal to boost C919 production, Comac's EU market ambitions: analysts

China is expected to sustain production of its home-grown aircraft and expand access to foreign skies, following the United States' removal of a ban on selling American jet engine parts and technology to Chinese buyers.
But analysts cautioned that earlier export restrictions imposed by the Trump administration had a chilling effect – one that could harden Beijing's resolve to accelerate the development of indigenous engines and other critical components.
Sales resumed last week after a bilateral agreement on export controls was confirmed, Reuters reported. The deal allows Shanghai-based Commercial Aircraft Corporation of China (Comac) to import parts from a GE-invested joint venture.
Access to engines, which China does not yet mass-produce domestically, enables Comac to fulfil hundreds of orders for its narrowbody C919 aircraft at its current pace. Without them, the company would need to seek new foreign suppliers or speed up the development of a home-grown alternative, said Hugh Ritchie, CEO of Aviation Analysts International in Australia.
'Without access to that technology, essentially the US would control parts for Chinese aircraft,' Ritchie said. 'It's pretty important for Comac.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

‘Mentally debilitating': Hong Kong couple faces threats, harassment from loan sharks
‘Mentally debilitating': Hong Kong couple faces threats, harassment from loan sharks

South China Morning Post

timean hour ago

  • South China Morning Post

‘Mentally debilitating': Hong Kong couple faces threats, harassment from loan sharks

When his health supplement business struggled with cash-flow problems, Bobby Tan* turned to a so-called professional networking group in Hong Kong for help, borrowing HK$300,000 (US$38,220) from a licensed small lender in April last year. Over the next 10 months, the Hong Kong permanent resident from Southeast Asia continued to take on more debt, borrowing from 30 different licensed moneylenders for a total of HK$5.05 million. Each lender charged him an illicit upfront 'commission' of 15 to 30 per cent in addition to other expenses – effectively an interest rate of 1,031 per cent. After deducting agents' commissions, he only received HK$4.15 million in loans. Having repaid more than HK$4.78 million, these lenders, who operate no differently from loan sharks, are still chasing Tan for HK$1.87 million. When Tan overborrowed and was living in fear of being chased back for unpaid loans in December last year, the agents persuaded him to use his wife's name, Alicia*, to borrow more.

HSBC, Manulife, BOC Life target Hong Kong's silver economy with regular-income products
HSBC, Manulife, BOC Life target Hong Kong's silver economy with regular-income products

South China Morning Post

timean hour ago

  • South China Morning Post

HSBC, Manulife, BOC Life target Hong Kong's silver economy with regular-income products

HSBC, Manulife and BOC Life are among the financial firms courting retirees with new investment products that offer regular income streams amid a broader government-led initiative to capture opportunities in the so-called silver economy. Advertisement The city's biggest lender, HSBC, last week launched five retirement-solution funds, which offer a non-guaranteed target dividend payout rate of 6 per cent a year. More retirement-focused funds would be added to the suite in the second half of 2025, the bank said. The target payout rate is higher than HSBC's interest rates on time deposits, which are currently between 2 and 3 per cent a year depending on tenure. 'In light of the growing importance of addressing longevity risk in Hong Kong, we have developed a specialised suite of post-retirement funds designed to provide customers with a predictable monthly income stream while safeguarding the long-term value of their retirement assets,' said Sami Abouzahr, head of wealth and premier solutions at HSBC Hong Kong, in a statement to the Post on Monday. 'These funds also align with the government's recent silver economy initiative, which aims to empower the elderly to effectively plan for their retirement.' Advertisement The funds charge low management fees of 1 per cent, he added. The bank said that the fund manager could adjust the dividend payout rate or even distribute dividends from part of the initial investment.

Transshipment clause in US-Vietnam trade deal cause for concern
Transshipment clause in US-Vietnam trade deal cause for concern

South China Morning Post

time2 hours ago

  • South China Morning Post

Transshipment clause in US-Vietnam trade deal cause for concern

The word ' transshipment ' is causing many to lose sleep in Asia, not least in China. The problem is that a term that Washington has been using as a blunt instrument in trade negotiations with Asean countries, among others, is vague enough to be open to interpretation but harsh enough to penalise China's trading partners in the region. The most extreme form of transshipment refers to exporters evading tariffs by diverting goods through a third country. But what about foreign components that have gone into another country's domestic production or assembling? 'Transshipment' is embedded in a clause in the new trade deal that Washington announced has been struck with Vietnam. As it may well become a test case, the reported trade pact has everyone's attention, though its official terms have yet to be released. China – a top supplier of goods and products to Association of Southeast Asian Nations economies – has already warned against trade deals that could undermine its interests. Initially, Hanoi heaved a sigh of relief over the trade pact. The Vietnamese stock market reacted by hitting its highest in more than three years. To rebalance trade in Washington's favour, US exports to Vietnam will have tariff-free market access, while Vietnamese exports will face a 20 per cent levy instead of the initial 46 per cent. But what worries people most in the region is the clause about transshipment. US President Donald Trump also wrote in his social media post announcing the deal that such goods would face a much higher rate of 40 per cent.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store