The reason? Confronting China and its ambitions in the aviation industry.

It was a victory for Airbus because, for at least five years and almost indeed more, it annulled a WTO ruling that allowed Boeing to impose price lists in retaliation for what the European Union did not take into account for Airbus.

Basically, it’s back to the starting point. Despite assurances from both sides that they would play fair in the future, the main points of the agreement are, at best, fluffy.

It’s a deal that obviously hurts Boeing, the country’s largest exporter and which accounts for most of the $1. 2 trillion in exports of aircraft, jet engines and chassis portions over the past decade.

Before we get to what this means for Boeing, let’s start with this:

Why would Biden settle for such a deal?

Why Biden would settle for such a deal has to do with how and where he learned to govern.

You have to go back part of a century, to Lyndon Johnson, to place a president who grew up in the United States Senate, a deliberative body. Since then, it has been largely a crowd of executives: former Governors Jimmy Carter, Ronald Reagan. , Bill Clinton, George W. Bush and Vice Presidents Richard Nixon and George HWBush. Three of them, Carter, at the time when Bush and Trump were even private sector executives before taking office.

Like Trump and former President Barack Obama before him, Biden believes that the singular challenge for America today, beyond the pandemic, beyond Russia’s excesses, beyond the demanding situations of the Middle East, is China.

Biden’s purpose is to unite the European Union and, in all likelihood, other open-air countries in Europe that help Western-style market economies and non-public freedoms. It was also the reason Obama created the 12-Nation Trans-Pacific Partnership, which Trump launched in parallel. when he took office. It has been the dominant global order, run through the United States, since the end of World War II.

This led to the United Nations, the World Health Organization, the North Atlantic Treaty Organization, and the General Agreement on Trade and Tariffs, the predecessor of the wto, which has resulted in many lax industrial agreements, most of them outdoors in the United States.

During this period, life expectancy has increased faster than at any time in history, while the number of other deficient people living in poverty has declined faster than at any time in history.

The U. S. industry U. S. It has quadrupled in the more than 3 decades, surpassing $4,000 billion twice before the pandemic.

There have been no large-scale wars.

The biggest risk to this global vision, according to Biden and many others, is China. China has the global for centuries, the so-called Middle Kingdom that saw itself in the middle of all things, just as the United States now does so in a decidedly more benign way.

Biden, as a former senator, knows that to counter the threats posed by an authoritarian government, the path to good fortune will result in casualties.

But why take ambitious steps that obviously hurt Boeing than simply lift former President Trump’s metal price lists for national security reasons, which annoys European leaders to date?

Again, this is China.

China has long sought to break the global duopoly enjoyed by Airbus, the European consortium founded in France, and Boeing, founded in Chicago, which manufactures in both Seattle and South Carolina.

Later this year, the single-aisle C919, owned by the Chinese government of Comac, is expected to make its first flight.

One estimate is that the Chinese government has submitted the song from $49 billion to $72 billion. Although this would possibly disturb our sensitivity to the flexible market in the West in the first place, it is better not to forget that the 17-year period. The dispute between Boeing and Airbus is not about the authorisation of government aid, but rather about its quantity and how it is appropriate.

The agreement between the EU and the US underlines this notion.

While the C919 isn’t expected to compete with its opposing numbers from Airbus and Boeing in the near future, it will almost in fact have a giant visitor base built in: the world’s largest aviation market, China.

Clearly, time is of the essence. As a mentor once told me: “I have nothing with monopolies . . . as long as they are mine. ” The same applies to the duopoly thinking of Boeing and Airbus and their respective governments.

The deal is obviously a challenge for Boeing, which hasn’t been short in recent times, from the pandemic to two fatal crashes and the most recent production.

While domestic travel is back, the most successful overseas travel remains moderate, adding to highly successful business travel. In addition, with so many aircraft on the ground, the second-hand market is a buyer’s market, which weighs even more heavily on orders.

Then there’s the industry war between the U. S. U. S. And China, which covers the vast majority of U. S. imports, is the vast majority of U. S. imports. U. S. And highly targeted U. S. exports. Started through Trump and continuing relentlessly with Biden, the industry war hasn’t helped.

Boeing Chief Executive Dave Calhoun spoke last month of the headaches the ongoing industrial war poses for the company, and said it possibly wouldn’t be able to build as many 737 MAX planes if China doesn’t start buying its planes again. 2017, when President Trump introduced the ongoing industrial war opposed to most U. S. imports from China, which continue to grow.

China counts for Boeing, and the United States, of course.

In fact, the United States has had a larger visitor in the category that includes aircraft, aircraft engines, and some parts of the fuselage than China in the last five, 10 years, or even since 2004, the start of the Airbus-Boeing dispute, according to the U. S. Census Bureau’s knowledge. That I analyzed.

From 2012 to 2018, the start of the industry war, China was the main customer in the category. Since 2004, U. S. exports to China from 2004 to 2020 totaled $1. 54 trillion.

I went back to 2004 because it was the first year that the U. S. Census Bureau was in the do-U. S. It replaced the way it publishes knowledge for aviation exports, it did not make any similar adjustments for imports.

On the import side, the Census still gives the main points that separate aircraft from aircraft engines and certain parts of the fuselage, but this is not the case on the export side, on the export side, they are combined, creating an opacity that would surely gain advantages from Boeing in WTO dispute that then began with Airbus , which, like Boeing, challenged the legality of its government support.

Since 2004, China has accounted for only 10% of all U. S. exports in this category, a percentage that has risen to nearly 11% in the last decade and 11. 5% in the past five years.

It would have been more vital in the last five years, of course, without the war of industry. The percentage fell to 8. 28% in 2019 and France finished China’s seven-year race as the No. 1 market for #1 U. S. exports.

What Joe Biden is doing is placing the country above one of the world’s largest and toughest corporations: a company that has provided attractive jobs for thousands of administrative and manual workers, brought untold prosperity to Seattle and others. it has been a pillar of the rise of globalization. Array not only because it has allowed other people to reach the global to degrees unimaginable not so long ago, but also the transport of goods.

These are not simple decisions. And certainly, the president can simply argue that while there may be short-term pain for Boeing, in the long run, boeing will. Time will tell.

It adopts this in pursuit of a broader goal, depending on the sharp teams in the U. S. Senate.

I didn’t leave the womb thinking I would locate the task of my life by writing and talking about business data, looking to make it attractive and relevant, but that’s where I stand.

I didn’t leave the womb thinking I would locate the task of my life by writing and talking about business knowledge, looking to make it attractive and relevant, but that’s where I am. Today, the company I founded in 1998, WorldCity, has published annual TradeNumbers publications across the country, from Seattle to Miami, from Los Angeles to New York and many points in between. Each month, we download more than 10 million pages and attitudes of census knowledge page in usindustrynumbers. com, lots of airports, seaports, countries, and export and import products. I am on the Federal Reserve’s Advisory Council on Trade and Transportation. Over the next year, I’ve talked about the industry in Washington, D. C. , Los Angeles, Laredo, Miami and Chicago. I also post a weekly video on industry topics. I don’t expect you to like it like me, but I hope to bring some clarity, a different attitude or useful ideas.