Boeing CEO says China to continue to be US major market

CHICAGO: China will continue to be both major market and partner to the United States, supporting thousands of US jobs and contributing significantly to the US balance of trade, said CEO of a Fortune 100 company in Chicago on Wednesday.

James McNerney Jr, chairman, president and CEO of the Boeing company, made the statement at a luncheon organized by The Chicago Council On Global Affairs as part of its Corporate Program: Focus on China.

McNerney started his speech by commending Secretary of State Hilary Clinton and Treasury Secretary Tim Geithner for the progress their teams made this week at the Sino-US Strategic and Economic Dialogue in Beijing.

"It is vitally important that US leaders are engaged in supporting US trade relationships. Expanded engagement in international markets, combined with the recovery of our financial service markets, is critical to accelerating our overall economic recovery," he said.

In 1972, then President Richard Nixon landed in Beijing aboard Air Force One - a Boeing 707 - marking the first visit of a US president to China. Boeing has been one of the few American companies present in China since diplomatic and economic channels were reopened.

"That Boeing 707 is truly the game-changing airplane of its time. China ordered ten Boeing 707 jetliners soon after the visit, setting in motion a tremendously productive relationship between a company (Boeing) and a country (China) - a relationship that continues today and in many ways has become symbolic of the four decades of cooperation between our two nations," McNerney said.

When talking about the significant changes in China, McNerney said, "One of the most important changes in China that I have witnessed - the rapid growth in personal incomes. A growing middle class in China is dramatically reshaping the country' s domestic economy and has global economic impact too."

Regarding Boeing's growing business with China, the CEO exclaimed, "China has bought more than any country in the world (except the US). It has a total of 1,560 airplanes (almost 53 percent of them are Boeing airplanes), and the average age of these planes is just six and a half years - meaning that China also has one of the youngest fleets in the region."

Commenting on the relationship between China and the United States, he noted, "I believe the US and China are already interdependent and growing more so every day. In fact, our interdependence with China is key to the US achieving President Obama' s goal of doubling America's exports over the next five years - an increase projected to support two million American jobs at a time when we really need them."

"I expect that the US-China relationship will always be complex, but that global interdependence in business will help keep both nations motivated to work out their differences constructively," he added.

McNerney gave an example to illustrate his point. "Despite ongoing debates on a number of issues, the two nations have worked very closely and effectively to navigate through the global financial crisis."

"The important concept here is maintaining dialogue between the two nations as well as between industry and the respective government, not only to address issues of concern but also to expand existing partnerships and create new ones," he added.

"The more we work with out counterparts in Chinese business and government, the more we will develop mutual understanding and influence."

McNerney has been chairman of the board, president and CEO of Boeing since July 2005. He has served as a member of the company's board since 2001. McNerney oversees the strategic direction of the 68.3-billion-dollar aerospace company.

With nearly 160,000 employees, Boeing is the largest manufacturer of commercial jetliners and military aircraft, with capabilities in rotorcraft, electronic and defense systems, missiles, satellites, and advanced information and communications systems.
 

(Source: www.chinadaily.com.cn)