Dreamliner Boeing 787 (Photo : Boeing)
Chinese President Xi Jinping may have been booed by Chinese migrants in the U.S. upon his arrival on Wednesday. However, big America businesses welcomes him with open arms because he entered into multibillion dollar deals with aircraft-maker Boeing and tech giant Cisco.
Xi ordered from Boeing 300 jets worth $38 billion. To make those planes, Boeing would build its first aircraft completion facility in China, reports USA Today. The president placed the order for 190 of Boeing's 737 model, 50 wide-body jets for Chinese air carriers and 60 single-aisles aircraft for leasing companies. He ordered the planes for China Aviation Supplies, ICBC Financial Leading and China Development Bank Leasing.
The huge order aims to meet the huge demand for air travel by Chinese, expanding at double-digit rate, as more Chinese become affluent. Boeing said that China opened in 2013, 30 routes of at least 3,500 miles using the Boeing 787 and 777-300ER jets for its long-haul flights.
Xi visited Boeing's Everett plant where the Dreamliner 787 is manufactured. Because of the projected 6.6 percent passenger traffic growth and 7 percent air cargo growth, Boeing estimates it could sell 6,330 planes worth $950 billion to China in the next two decades. About 75 percent of these would be single-aisle planes.
With these numbers, the south Asian giant would displace the U.S. as the largest aircraft market. Malayan Banking analyst Moshin Aziz explains, "The emerging middle class in China is helping to boost demand ... Most of the planes ordered will be for growth, and very few will be for replacement," quotes Bloomberg.
Cisco Systems will also partner with Inspur, a Chinese cloud computing company, to sell networking technologies and products in China.
