China's First Jet to Rival Boeing and Airbus Is Helped by U.S. Technology
bloomberg.com
bloomberg.com
Did it in other markets, currently under way against the iPhone.
Airbus and Boeing are toast in China.
China does not play ball, at all. Literally don't give a shit about the Wests opinions or approaches to deals. Perceived in the West as cheating, but that is just a cultural viewpoint.
WeChat could be a real threat to Google and Facebook. It's comprehensive; you can do messaging, banking, shopping, and taxi calling from inside WeChat. It has sub-applications for other services. It's a post-desktop world. Google and Facebook came from desktops and crammed down to phones; WeChat was born mobile.
[0] http://www.cnbc.com/2016/02/22/huawei-well-re-enter-us-marke...
Europe is pretty inflexible, compared to the US. E.g. there is no free market for most agricultural products in the EU. And before you say it, no this is not due to US meats having hormones in them. Firstly, those taxes and rules apply to everything, whether or not produced with EU rule compliance, and secondly, there isn't even a free market within the EU for many products (e.g. wine in France. Olive oil (or other oils) in Southern Europe, ...). And of course, the EU is certainly not neutral when it comes to other products as well, e.g. Boeing vs Airbus.
China is extremely INflexible and hostile to free trade, even today. VERY few commodities trade freely with China, even just taking the published import tariffs and conditions.
Add to that that the Chinese state famously owns pretty much every large Chinese corporation (state owned enterprises) and it's influence and restrictions over what products are welcome in China goes above and beyond the officially published rules.
So I believe a fair assumption would be that no, the US would not object too much to large Chinese companies being successful in the US. In fact, I do believe there's large scale examples of that if you search just a little bit.
For a practical example of the US allowing large non-US businesses to operate freely in the US, even where it hurts local industry, you only need to look at the steel industry.
Google and Facebook in particular are a security agencies dream - people volunteering to share messages, location, what they're reading, who they're friends with, etc - that a rational country would be afraid of from even friendly nations.
They don't "need" those markets but they want them. It will help to solidify China's position as the third superpower.
There are incentives for those African nations to help this happen as well. Beyond the local benefits of increased commerce, they are thinking about negotiating better rates for their natural resources than they currently receive from the west.
If you're married and divorced twice, when you marry again you may have only one spouse but that is your third spouse.
The EU certainly has the technology to be a military superpower, and a few member countries have relatively powerful land and air forces, but the Europeans don't have the logistics capability they'd need to fight a major war outside Europe, and their collective navy isn't very strong.
Novel aircraft systems require a lot of effort to get approval from the FAA to fly. There's little benefit here unless you're also stealing/faking that paperwork.
China, of course, denies this, but the ARJ21 is very similar in design to many McDonnell Douglas aircraft.
If they can do something similar with composites - learn from/reverse engineer Airbus and Boeing composite designs, but not genuinely steal plans - they might be able to skip a fair amount of the extreme pain with composites A and B have had over the past decade.
Edit: for the uninitiated, the Tu-144 was a bit of deathtrap. While it made some interesting improvements to the original design, it had numerous problems due to less advanced Soviet manufacturing.
Many of their aircraft had similar configurations to Western equivalents but different design aspects. Just like 707 and DC-8 in the West.
On the other hand China literally copied Soviet types after the Sino-Soviet split. Tu-26, MiG-21, An-24, An-12 were all reversed engineered without tooling.
Tu-144, Tu-160, Buran and Yak-38
Of course, we don't know for sure what happened with these. It's unlikely they were cloned the same way the B-29 was (rivet for rivet) but they were very likely products of the espionage environment at the time.
British did it to the Chinese many decades earlier of course. Darjeeling tea was mostly developed by stealing the highly coveted tea secrets from China. Decades before that, America was able to greatly advance its industrial capability by stealing secrets from the UK.
"Cyberspies: The Secret History of Surveillance, Hacking, and Digital Espionage" covers this pretty well. Also goes into Chinese telecom hardware that was completely stolen from Cisco, bugs and all.
https://www.amazon.com/Cyberspies-History-Surveillance-Hacki...
The audio book is well read: http://www.audible.com/pd/History/Cyberspies-Audiobook/B01FV...
Boeing and Airbus:
-Are owned by shareholders all over the world(including China!)[1]
-Assemble planes all over the world(including China!)[2][3]
-Have employees all over the world (including China!)[4]
-Use parts made all over the world (including China!) [5][6]
Moreover, trade is always equal[7]. If the US sends China $100 of corn and China sends back $100 of plane, who cares?
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[1]http://www.cfr.org/united-states/quarterly-update-foreign-ow...
[2]https://www.wsj.com/articles/boeing-identifies-site-for-chin...
[3] http://www.businessinsider.com/airbus-china-factory-a320-201...
[4]https://jobs.boeing.com/location/china-jobs/185/1814991/2
[5]http://boeing.mediaroom.com/2005-06-02-Boeing-787-Highlights...
[6]http://www.businessinsider.com/graphic-boeing-787-dreamliner...
[7]You may have heard of a "trade deficit". Well, is China sending the US $100 in products and not ask for anything in return? If so, that would obviously be amazing for the US and foolish for China (free stuff!). The truth is that instead of purchasing $100 in products to send back to China, China instead decides to purchase $100 of investment stuff in the USA, and will take the future returns that investment provides them. An example: China sends $100 of plane, takes that $100 and builds a $100 apartment building in the USA. It then takes $5 of profits a year back to China in corn, and then sells the building in 30 years for (now a larger amount) of $200 in corn.
[1] https://www.bloomberg.com/news/articles/2016-12-02/obama-sai... [2] http://www.thehindubusinessline.com/economy/logistics/boeing... [3] https://www.pcgamesn.com/AMD-Vega-design-complete [4] http://wccftech.com/us-government-bans-intel-nvidia-amd-chip...
That's just narrow-minded economic dogma, and economics is very far from a complete theory of humanity.
For a illustrative example of why it's too simplistic, consider this: people with weapons can coerce people without into bad trade deals. Aircraft production is more of a weapon-making skill than agriculture. If China has the weapon-making skills and the US loses them due to dogma-driven trade specialization, a future China (overtaken by some racist ideology, for instance) could conquer and destroy the US. There are political, military, and other reasons why someone should care about the specifics of what they're trading.
Ever wonder why the old DC10 style tri-jets went out of favor? Too hard to maintain the tail engine.
Concorde? Burned too much fuel, excessively high landing speed/distance (11,800 ft 0_o) because of it's short wings needed for supersonic flight.
Why are there no flying wing B-2 style airliners like Popular Science prophetizes about every few years? Nowhere to put windows. Also, tubes lend themselves better to the pressurization cycles that airliners experience.
The fact is, it turns out given current market constraints the optimal design is two engines, tube fuselage, narrow swept wings. Style has absolutely no influence over the economics of airline operation.
Whether the main wing or the horizontal stabilizer stalls first, the plane is recoverable (including with a failed powerplant). That's not a given with other designs. As soon as you go with a candard design, you have to ensure the canard always stalls first or you've got an unrecoverability problem.
Existing designs are less complex is what it comes down to.
Canada's Bombardier CSeries CS100 - 120 passengers.
Japans Mitsubishi Regional Jet - 80 passengers.
Brazil's Embraer E-Jet - 120 passengers.
The C-series nearly bankrupted Bombardier, and a lot of it's competitive advantages aren't things the market once. It's also much smaller, and frankly I've never been in a good Bombardier. There's a lot of CRJs, but they're more expensive and lower quality than ERJs. I don't think the C-series is any better. I've also dealt with Bombardier's aerospace division, and they're kind of unpleasant. Not serious competition at all.
Mitsubishi - 80 pax is half of this, more in line with the E-jet. It's a regional, not a direct competitor. This is not going to run with the big boys of the DFW-LGA/ATL-ORD type flights.
E-Jet - Great planes, again not the same league. The C919 carries "158-174" pax - that's a totally class of plane. The E-jet line tops out at 120, as this line is regional jets, most are smaller. Bombardier is totally fucked here, CRJ's are terrible. I think the E-Jet is going to do great. The 919 competes with the 737/320 class, which until now has been a duopoly with some TERRIBLE Russian attempts to compete.