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Tuesday, January 18, 2011

GE, China ink joint venture agreement to build commercial jets

Vittorio Hernandez – AHN News
Washington, DC, United States (AHN) – Aside from trade, currency and human rights issues Chinese President Hu Jintao is expected to tackle during his four-day visit to the U.S., he is also expected to ink a joint venture agreement deal with General Electric. Jintao arrives Tuesday.

The signing, scheduled on Friday, is for GE to share its technology with China to build commercial jets. GE, previously known for manufacturing quality home appliances, has grown to become one of the aviation industry’s largest suppliers of jet engines and aircraft technology.

Among the technologies it will share with a state-owned Chinese firm under the agreement is the same airplane electronics technology used in Boeing’s new high-tech 787 Dreamliner aircraft.

The joint venture already has a customer who has placed an order with the Chinese firm for a C919 aircraft. The order means China will be competing directly with established aircraft manufacturers Boeing and Airbus.

Experts said GE runs the risk of eventually being beaten by China in sharing technology and trade secrets because of the reputation of Chinese firms of producing similar products using western technology at much lower prices.

GE acknowledged such risks, but said it will take its chances in anticipation that the Chinese commercial aircraft market will generate sales of over $400 billion over the next 20 years.

Washington observers said the Chinese president’s meeting with President Barack Obama will provide both nations an opportunity to address a wide range of global, regional and bilateral issues such as more Chinese cooperation in countering proliferation of nuclear weapons, cutting imbalances in the global economy and battling climate change.

Is GE Arming China to Compete With America?

GE plans to sell its aircraft electronics to Chinese companies, and if you don't have a problem with that, maybe you should. After all, China just test flew a prototype stealth fighter, it continues to build up its military -- and we can only hope it's not planning to expand its territory in ways that threaten the U.S.

Your feedback is always welcome.
Thank you!

China Wins 100 C919 Orders, Breaking Airbus Boeing Grip

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