||Billions for Boeing:
China Enters The WTO As America Enters A Deep Recession
|September 21, 2001 Blue chip industrial Boeing,
the world's most famous maker of jet airplanes, announced a huge layoff of employees (30,000+) this week. All businesses associated with aviation, from airlines
to manufacturers, are claiming enormous losses from the unprecedented shutdown of the
entire USA airport network during the terrorist attacks on America.
"Boeing has been in China for almost 30 years, and 64 percent of the commercial airplanes in the
China fleet are Boeing products."
--Fred Howard, president of Boeing China
Read the Boeing Press Release
| SHORT TERM LOSSES for the industry are probably
staggering but it is important to remember that airlines and their manufacturers were all losing money long before
the tragic events of September 11, 2001. Boeing began layoffs at the end of July.
Those layoffs are part of the longest drop in USA industrial production since 1960.
consecutive months industrial production has declined, at times dramatically. According to the Federal Reserve,
the capacity utilization index fell to levels last seen in 1982, during the most severe post-World War II recession
of 1981-82. Indeed Federal Reserve Chairman Alan Greenspan met behind closed doors Wednesday with leaders of the
USA Congress to discuss a fiscal package to spur the sputtering economy. His advice to Republicans who
want to spend up to $180 billion to avert a recession is to delay actions until the health of the economy can be
News from war-torn Wall Street, however, may force
government leaders and the media to use the "R" word. The Dow Jones Industrial Average
fell almost 15 percent for the week, the biggest drop since a 15.5 percent weekly loss in 1933! Damage to the NASDAQ
was even more extreme. The Nasdaq Composite Index sank 16
percent for the week, a record. It is now no secret that the USA economy is in a deep trench.
MEANWHILE IN GENEVA...
| After 15 years of unsuccessful attempts, China has suddenly concluded its talks and protocols with the
World Trade Organization
and will be admitted as a member at its fourth
ministerial conference to be held November in Qatar. This event sets into motion trade agreements
concluded with the USA and the EU (as well as every other member country of the WTO) that will allow
historic access to the giant Chinese market economy, the world's fastest growing large economy.
tremendous growth expected in China will create a new dynamic in the creation of a real global economy.
At the conclusion of the Forbes Global CEO Conference
in Singapore on September 19, 2001, Singapore's Deputy Prime Minister Lee Hsien Loong commented that "..China is becoming
the 'factory of the world' in the 21st century" noting that "China’s entry into the WTO will hasten its
integration into the world economy, increasing the pressure both on other countries and also on China’s own long-protected
and inefficient state-owned enterprises." [Read the complete Speech]
GOOD FOR AMERICA?
How is this good news for America? China's growth is based on the strength of its domestic economy, meaning that an immense
middle class of several hundred million persons are building and buying houses, buying a first car, computer, all manner
of imported foreign branded goods, and taking holidays over the vast expanse of a country larger than the continental USA
plus Alaska and Hawaii. Commercial air travel is booming in China with passenger growth rate expanding rapidly.
China's airlines will add 1,459 new airplanes to serve domestic markets by 2020.
Boeing has been selling jet
airplanes to China for almost 30 years and predicts that it will capture a growing share of the $144 billion (USA dollars)
that Chinese airlines may spend on aircraft. At the conclusion of the China 2001 Aviation Exposition in Beijing
this week it was announced that Chinese airlines will
buy 30 Boeing 737 jet planes.
GOOD NEWS for an industry and nation in need of a lift.
©Sinomania!, 2001. All rights reserved. Information from Agencies, Sinomania! research were used in this report.