Free Boeing and Chinese Companies Essay Sample
Boeing being the world's largest and Defense Company has claimed to be the largest exporter for the aerospace. For a couple of years this company has reported an upward shift in terms of the revenues it has earned since its formation. Investing in China would therefore be advantageous considering the economical trends in China aggregated by the political tensions.
Trends and forces in China
China is headed by an economist government which has greatly contributed towards companies shying away from investing in the country, mainly due to the political tensions. Despite of such political evils, China has recorded an annual increase of 10% in the Traffic growth- a factor that has triggered the Chinese companies to become essential and potential consumers of Boeing aircraft (Yenne, 2005).)
The political instability in China has been a major drive for the company. For instance, according to the recent research it has been affirmed that some aerospace destroyers in America were made out of the military threats that had been perceived by America. Some of the aerospace destroyers made were the F-22, DDG-1000 and the Virginia class submarine as they were made prior the anticipated threats in China. It is projected that should the threats continue, Boeing will report an increase in its financial prospects. This means that Boeing does not compromise on bargaining away some important industry knowledge but rather increase on its sales. Whether the relationship between U.S.A and China will be stabilized, Boeing will continue investing in Chinese companies even at the verge of any predetermined risk (Boeing Company. (2007).)
China being a developed country has been termed as having potential trading grounds which has resulted in the success of many businesses across the world. This is mainly attributed to the adequate resources and positive economical trends in the country. However some other drawbacks have caused investors to withdraw away from the country with the exclusion of Boeing Company. The nature of the business Boeing carries out is very beneficial to the Chinese companies and therefore despite all the repercussions that the companies experience, Boeing will still invest in the country (N.R. C & code of federal regulations, 2002).