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China establishes company to make its own jumbo jets

May 11, 2008 12:12 AM EST | AP

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Read More: Boeing, China, China Economy, China Jet Planes, Business News
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Chinese President Hu Jintao waves after meeting employees and students during a visit to the headquarters of Japanese electronics conglomerate Matsushita Electric Industrial Co. in Kadoma, western Japan, Saturday, May 10, 2008. (AP Photo/Yuriko Nakao, Pool)

BEIJING — China has established a homegrown company to make passenger jumbo jets, state media reported Sunday _ a step forward in the country's quest to become less dependent on Boeing and Airbus.

China Commercial Aircraft Co. was established in Shanghai with registered capital of 19 billion yuan $2.7 billion, the official Xinhua News Agency said.

It said the central government and the Shanghai government are among the major shareholders, as are China's two main aircraft manufacturing and servicing companies, China Aviation Industry Corp. I and China Aviation Industry Corp. II, which were split off from state-owned China Aviation Industry Corp. in 1999.

Europe's Airbus has forecast that China's domestic market will increase fivefold by 2026. Airbus and Chicago-based rival Boeing dominate the market for commercial airplanes carrying 100 or more people.

Xinhua said Commercial Aircraft Co. will be able to make planes with more than 150 seats.

General manager Jin Zhuanglong said in a Xinhua interview that it was too early to say when a Chinese-developed jumbo jet would be taking off, as it would take a long time to develop homegrown talent and do research.

"According to the development history of Airbus and Boeing, the development and success of civil planes cannot be realized by relying on one or two generations," he said.

 

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collapse GEM-592 See Profile I'm a Fan of GEM-592

Some good issues raised, but about Boeing I could care less. In this and other industries, they've been illegally transfering technology to the Chinese for a long time, and anyone with any sense who has worked for them can't help but see what's going on. They do this to protect what they see as their long term market, knowing the days of their US-based business are numbered. Another company that calls itself a US-company whenever it is advantageous, but will break any law and go overseas when it's time to make money. Oh yes, their military business too, only less visibly for now. Don't Boeing employees realize what they've been working for?

replyReply favoriteFavorite Flag as abusive Posted 02:27 PM on 05/13/2008
collapse GerryS See Profile I'm a Fan of GerryS

and the chinese will paint everyting red, in lead paint-

replyReply favoriteFavorite Flag as abusive Posted 11:42 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

we use to paint everything with lead paint, and not that long ago.

replyReply favoriteFavorite Flag as abusive Posted 08:49 PM on 05/12/2008
collapse WIpatriot See Profile I'm a Fan of WIpatriot

and look how we turned out.

replyReply favoriteFavorite Flag as abusive Posted 07:33 AM on 05/14/2008
collapse Sumocat See Profile I'm a Fan of Sumocat

Good for them. They build just about everything else in China anyway.

replyReply favoriteFavorite Flag as abusive Posted 11:02 AM on 05/12/2008
collapse MajorKong See Profile I'm a Fan of MajorKong

If the Russian aerospace industry is any example, engines may be a problem for them.

The Russians have always made good airframes but their engines, while plenty powerful, are fuel thirsty. For that reason they've had a hard time selling their planes even to Aeroflot, which is now using mostly Airbus products.

replyReply favoriteFavorite Flag as abusive Posted 09:11 AM on 05/12/2008
collapse michelv See Profile I'm a Fan of michelv

They can always buy the engines if they have to.

replyReply favoriteFavorite Flag as abusive Posted 11:34 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

They could just buy an engine company. Maybe Pratt Whitney or GE. After all, there are several American firms who sold out to the Chinese. Uhmmm, Remember a computer company called IBM?? Use to be big around the world. I think they are now, Lenovo..

replyReply favoriteFavorite Flag as abusive Posted 08:51 PM on 05/12/2008
collapse inajetik See Profile I'm a Fan of inajetik

IBM is a terrible example... they still do make computers, only instead of the cheap, non value add, commodities (ie desktops/laptops) they only make high end, expensive servers and super computers... you know, the ones that drive American research and innovation. Computers were specialized or their most important line of business.... a much better example would have been the Ohio company that made magnets for our 'smart' bombs... now that was a highly specialized product... that we as a country really use

favoriteFavorite Flag as abusive Posted 05:37 AM on 05/13/2008
collapse mamacat See Profile I'm a Fan of mamacat

The Chinese are very hardworking, intelligent people. The U.S. has been doing some very stupid things lately. If the U.S. doesn't reject the culture of idiocy in domestic and foreign affairs that it has embraced during the Bush years, it may find that it is soon in very worse shape than it already is.

History is full of stories of Empires that thought they would last forever. None of them ever has.

replyReply favoriteFavorite Flag as abusive Posted 08:28 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

But to many Americans, and especially corporations who control the majority of our gov, love what is going on. They are short sighted and see immediate profits. They dont look 2 , 3 or 10 years out into the future to see what may, and is happening now from these immediate gains. We are in a I want it all and I want it now environment, and they dont care how they get it.
Yup, the Chinese are very smart, and they spend a lot of money on education and health care for all. The one thing I dont like is that if you move from you city or village to another, you lose your free health care. No portability. But besides the point is that they are investing in their future. While in America we invest in our personal greed. To hell with education , training programs or a healthy public. It could mean less immediate profits for corporate elitists.

replyReply favoriteFavorite Flag as abusive Posted 08:55 PM on 05/12/2008
collapse michelv See Profile I'm a Fan of michelv

No, they don't have to reverse engineer anything. China has been doing stuff for Boeing for decades.

This is how it works with all industries. They set up factories in China to save a few bucks on production costs. They train a lot of people, get the factories up and running, and then after a few years, some of the key Chinese folks leave and start their own shops with all the knowledge they learned.

So for the sake of saving a few bucks over a few years, these American companies basically spawn competitors that come and bit them in the ass 5 to 10 years later. But who cares, since by then, the executives cashed in all the money the "made" for the company. Sure, the gave a house down the road, but they made their nice big bonuses, and that's all that counts. God bless America, where you can sell off your children for a few bucks. Hey, Bush is doing it as we speak, by pissing away trillions that our kids will have to pay.

replyReply favoriteFavorite Flag as abusive Posted 01:00 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

This is the epitomey of outsourcing.

" The Martin Luther King Jr. National Memorial is going to be big. The site for it is a four-acre plot on the Tidal Basin, not far from the Jefferson and Lincoln memorials on the National Mall in Washington, D.C."

Now here is the part that I find incredible.

" Lei Yixin shows off a model of a Martin Luther King Jr. statue at his studio in Hunan province, China, last year. "

A statue representing one of the most important people in America, representing one of the most important times in America, and representing freedoms and liberties of millions of Americans, and its statue creation is outsourced to China, a communist country. I would bet it had everything to do with dollars . Here is the link, go read it yourself. I find it appalling.

http://www.npr.org/templates/story/story.php?storyId=90348208

replyReply favoriteFavorite Flag as abusive Posted 12:48 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

I dont like it, but I cant say that I blame them. After all, it was our greed driven corporations with the help of their political puppets in DC that gave the Chinese the technologies, the abilities and the know how by outsourcing everything to China all in the name of cheap labor and immediate huge profits. And now, to quote an rev wright quote, The chickens are coming home to roost. All those Harvard, Yale, Stanford and other Ivy league trained CEOS and Politicians have used their education of greed and profit to its fullest. Destroying the US in the process. But they learned well and put into practice everything Harvard and others teach them. Ah, Ivy League Universities have groomed the horsemen of the American appocylips.

replyReply favoriteFavorite Flag as abusive Posted 08:35 PM on 05/11/2008
collapse KillTheMessenger See Profile I'm a Fan of KillTheMessenger

China has 3500 years of undisrupted scholarship history. That you don't know about it means nothing to the Chinese. They teach their very young that in order to be something in life, they have to learn. China, at its core, is a meritocracy. If you want proof, all you have to do is to go to any top US university and look at the number of Chinese American students in engineering disciplines. And look at the number of Chinese students, too. You will be surprised. If you think we are pushing technology on the Chinese, I can only conclude that you don't know anything substantial about technology or the Chinese.

It is very dangerous not to know ones enemies. It is a sure way to lose a battle.

replyReply favoriteFavorite Flag as abusive Posted 10:56 PM on 05/11/2008
collapse Amalek See Profile I'm a Fan of Amalek

I am a professor at China's top university.

Chinese engineering students are moving ahead of their US counterparts. There are more of them and they study with an intensity that few US kids will match. China is not going to need to copy Boeing or Airbus designs. By the time they get this one built, it will be the other way around.

The US needs to upgrade its education system from kindergarten if it is going to remain competitive. I don't think we will do it. We are too fat and lazy.

replyReply favoriteFavorite Flag as abusive Posted 04:57 AM on 05/12/2008
collapse loki See Profile I'm a Fan of loki

You forgot to mention that China turns out more high quality engineers each year than the US does in 5 years. Maybe even 10 years if you base it on competent engineers. We charge everyone here tens of thousands and give mediocre educations, with our highest and best respected Universities charging hundreds of thousands and turning out the greediest, most narcissistic trained elitist the world have ever seen. Just think about this,, Where were the majority of the CEO's and Political leaders who have done their best to destroy Americas economy trained?
Its not state colleges , thats for sure. Its the greed factories of Harvard, Yale , Stanford and the other ivy leagues. We do not educate here, we profit and reprogram.

favoriteFavorite Flag as abusive Posted 09:01 PM on 05/12/2008
collapse MajorKong See Profile I'm a Fan of MajorKong

I suspect that in China, smart kids aren't ridiculed for being "geeks" and "dweebs" either. There is an anti-intellectual streak in this country that is going to bite us someday, if it hasn't already.

favoriteFavorite Flag as abusive Posted 09:07 AM on 05/12/2008
collapse bola47 See Profile I'm a Fan of bola47

if you have seen any of the pictures from the beijing auto show, then you know how they make copies of european cars. i hope boeing has design patents otherwise you will start to see copies of the 747 & 777 in the skies over china.

replyReply favoriteFavorite Flag as abusive Posted 05:52 PM on 05/11/2008
collapse loki See Profile I'm a Fan of loki

Good god man , the US has been copying the euro designs for years. They even use to use it in to promote themselves in ads. Everyone copies. Its US corporations that expedited the process in China due to their greed. The chinese people are very smart, and very hard working. Even what many Americans would refer to as dumb villagers are usually better educated than most US college grads. I know more Chinese who can name all 50 states and the capitals than I do US college grads. And those are the simple basics here in the US , or use to be. If our gov put 1/10 the money and effort into education as the Chinese do, we might have a fighting chance. But most of the graduates today are just stupid. They might be book smart, but they cant apply anything but their mouths. And that does nothing for progress.

replyReply favoriteFavorite Flag as abusive Posted 09:05 PM on 05/12/2008
collapse JScott See Profile I'm a Fan of JScott

Yup and we can expect some sorta gap in their QC when one of them crashes because they shortcutted on engineering and safety and such. And you'd think instead they woulda started up a more advanced rail transport company that could build a successful maglev or something like that, as usual they go with jet aircraft because it show progress and prestige.

replyReply favoriteFavorite Flag as abusive Posted 12:27 AM on 05/12/2008
collapse KillTheMessenger See Profile I'm a Fan of KillTheMessenger

Design patents in the US mean nothing in China. IP in China is a very difficult problem. And no amount of fuming about it will help. But please don't think the Chinese are not developing their own technology. They do. Just like the Japanese they started out by learning from the West. They have long past the point where imitation is the main technology driver.

replyReply favoriteFavorite Flag as abusive Posted 10:58 PM on 05/11/2008
collapse yaoster See Profile I'm a Fan of yaoster

As if America's own industrial revolution didn't include exact copies of British designs?

replyReply favoriteFavorite Flag as abusive Posted 10:05 PM on 05/11/2008
collapse AdobePhsyko See Profile I'm a Fan of AdobePhsyko

There's only one problem with a Chinese Jet. Once you get to your destination ,You'll want to fly again in a half an hour
Rimshot/Cymbal Crash !

replyReply favoriteFavorite Flag as abusive Posted 05:24 PM on 05/11/2008
collapse ReasonIsMyReligion See Profile I'm a Fan of ReasonIsMyReligion

LOL.

Jumbo jet, jumbo shrimp, same diff.

replyReply favoriteFavorite Flag as abusive Posted 08:19 PM on 05/11/2008
collapse crazylikeafox See Profile I'm a Fan of crazylikeafox

In about 20 years times Americas will be the ones working in sweatshops making junk to sell the Chinese. They will have all the money. Our factories will be owned by them. They will pay us nothing for our natural resources because we will owe them so much money and have nothing to pay up with.

Get ready America, you will work for pennies a day the way they are now.

replyReply favoriteFavorite Flag as abusive Posted 04:18 PM on 05/11/2008
collapse loki See Profile I'm a Fan of loki

My Dad use to always say " give it time, sooner or later Americans will be jumping the fence to get to the good jobs in Mexico" He was so correct.

replyReply favoriteFavorite Flag as abusive Posted 09:06 PM on 05/12/2008
collapse thegreatgiginthesky See Profile I'm a Fan of thegreatgiginthesky

Clinton and Bush can be thanked for the effective rise of China. We abandoned our stance towards communists and this is what we have today. Both presidents contributed to the destruction of American manufacturing and today we have 3rd rate products that have no longevity. Gone are the days when people would own their TV's for years on out. These days people buy a TV every year or every other year. Gone are the days when people used to keep their cars well after they were paid off. Now we have a perpetual car payments in the form of "Lease" programs. Gone are the days when people worked hard and were rewarded for their hard work. Today we have the CEO smiling and telling you how you are no longer needed because Chang will do the same work you will for a penny a year and no bathroom breaks.

replyReply favoriteFavorite Flag as abusive Posted 04:17 PM on 05/11/2008
collapse loki See Profile I'm a Fan of loki

No, Clinton and Bush are just puppets. Corporations and the wonderful American Style Capitalist can be thanked for this.

replyReply favoriteFavorite Flag as abusive Posted 09:07 PM on 05/12/2008
collapse Amalek See Profile I'm a Fan of Amalek

But Clinton and Bush succeeded in exporting capitalism to China. We won. Capitalism beat communism. Why the sour grapes? Don't like getting beat at your own game?

replyReply favoriteFavorite Flag as abusive Posted 05:00 AM on 05/12/2008
collapse tulsey See Profile I'm a Fan of tulsey

The question was, as China embraced capitalism, would it become more democratic? No, it became republican. Chinese worker, human, safety rights, not to mention underhanded business practices are a neocon's wet dream. That said, they do a better job protecting their people from natural disasters al la Katrina, Beat at our own game indeed.

replyReply favoriteFavorite Flag as abusive Posted 02:34 PM on 05/12/2008
collapse thegreatgiginthesky See Profile I'm a Fan of thegreatgiginthesky

It is one thing to get beat at your own game. It is another thing to play the game on a playing field that is heavily favoring the opponent.

replyReply favoriteFavorite Flag as abusive Posted 09:36 AM on 05/12/2008
collapse thegreatgiginthesky See Profile I'm a Fan of thegreatgiginthesky

Clinton and Bush exported our manufacturing to China. Nothing has changed as far as China and the Communist regim. Clinton and Bush just finanaced China to ensure that communism would thrive and would not die like the USSR did.

replyReply favoriteFavorite Flag as abusive Posted 09:35 AM on 05/12/2008
collapse PalleKuling See Profile I'm a Fan of PalleKuling

I bought the cheapest 28" TV I could find back in 1998 - it was Chinese and it still works perfectly. The reason I upgraded to a flatscreen has nothing to do with quality... I just wanted something BIGGER!

And that is unfortunately the problem - we want new stuff all the time. It is demand that drives production. If you want to blame someone - blame this the lifestyle magazines, MTV Cribs, whatever... but just don't say that it is because of product quality. That is just plain wrong.

replyReply favoriteFavorite Flag as abusive Posted 09:53 PM on 05/11/2008
collapse thegreatgiginthesky See Profile I'm a Fan of thegreatgiginthesky

Buy your own jumbo jet at your local Walmart or Sams Club.

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