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ENGLISH EDITION China.Table #299 / 24. March 2022

Crash aftermath for Boeing + Neon shortage + Crop failure

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Professional Briefing
You are reading the preview edition.
To the complete edition.

To the German edition.
  • China loses trust in Boeing
  • Chips: without Ukraine’s noble gasses, dependence on China increases
  • Agriculture minister: extreme weather threatens harvests
  • Geely’s profits dwindle due to commodity prices
  • China’s power grid to become stabler
  • TikTok filters “Peng Shuai” and “queer” in Germany
  • Profile: Basketball player Enes Kanter Freedom provokes Xi
Dear reader,

Despite the recovery of the black box on Wednesday, there have been no new details about the cause of the plane crash in Guangxi. But some of its consequences are already foreseeable: Another 737 debacle is causing the Chinese Market to lose trust in Boeing, our Beijing team analyzes. Since China is also entering the aviation market, it remains to be seen whether this will turn out beneficial for Airbus.

The war in Ukraine is also having a major consequence for supply chains. In today’s issue, Frank Sieren examines the impact on the supply of the noble gas neon. It may be best known for its use in old-fashioned fluorescent tubes. In reality, however, it is now used primarily in the fabrication of microchips – and they are in short supply as it is. This could benefit China, which can now step in as the second-largest supplier after Ukraine in the US business. This new dependency has, in turn, significant implications for trade policy.

The shelves for flour and sunflower oil in German stores are empty solely because of hoarding. But this is the response of consumers to entirely justified concerns about food security. But food security simply concerns the Global South more than the EU. Ukraine and Russia are among the world’s most important exporters of cereals. If China now experiences poor harvests because of climate change, this will considerably intensify concerns, analyzes Nico Beckert. China indeed has enormous reserves. But it will probably keep them for itself. After all, it feeds almost a fifth of the world’s population.

Your
Finn Mayer-Kuckuk
Image of Finn  Mayer-Kuckuk

Feature

Boeing loses trust after 737 crash

A cockpit recorder of MU5735 has been found, its data seems to be undamaged. The flight data recorder is still missing.
US aircraft manufacturer Boeing has been struggling with problems in the People’s Republic for some time because its new 737 Max is still not permitted to operate there. The crash of the 737-800 now makes matters even worse.

It could have been a great week in China for Boeing. As Reuters reported, a Boeing 737 Max headed from Boeing’s headquarters in Seattle to the People’s Republic last Monday. There, according to a source, the plane was scheduled to first land at Boeing’s Chinese delivery center and later be handed over to Shanghai Airlines, a subsidiary of China Eastern. But the plane is currently still waiting in Hawaii.

This Monday, China experienced the worst aviation disaster in more than ten years with an estimated 132 fatalities. Analysts now believe it is unlikely that times will get better any time soon for Boeing in China. The ill-fated China Eastern aircraft was a 737-800, which, unlike the 737 Max, has an excellent safety record. Nevertheless, authorities are now “extra careful,” according to an aviation expert in Beijing.

The history of the 737 Max is well known: Two aircraft of the relatively new type had crashed in Indonesia and Ethiopia in 2018 and 2019 in quick succession, resulting in flight bans around the world. Boeing came under massive pressure because a software error was held responsible.

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