Chinese Engine Development

G

gelgoog

Lieutenant General
Registered Member
In Russia during Yeltsin's government Tupolev wanted to buy Western engines to use in the Tu-204. The US government blocked US Exim Bank loans to buy the engines until Yeltsin removed both tariffs and VAT on Boeing aircraft. This was done and gave Boeing an unfair advantage in the Russian market. Tupolev still had to collect VAT. Cheap low interest rate Western loans meant it was easier to acquire Western aircraft than buy all new Russian ones up front despite lower price of Russian airplanes. And guess what that Exim Bank loan for engines was never unblocked anyway. So Russia gave away its aviation sector just like that. The Soviets used to be the second largest airplane producing nation, and modern Russia produced zero civilian transport aircraft last year.
 
Last edited:
sunnymaxi

sunnymaxi

Major
Registered Member
gelgoog said:
In Russia during Yeltsin's government Tupolev wanted to buy Western engines to use in the Tu-204. The US government blocked US Exim Bank loans to buy the engines until Yeltsin removed both tariffs and VAT on Boeing aircraft. This was done and gave Boeing an unfair advantage in the Russian market. Tupolev still had to collect VAT. Cheap low interest rate Western loans meant it was easier to acquire Western aircraft than buy all new Russian ones up front despite lower price of Russian airplanes. And guess what that Exim Bank loan for engines was never unblocked anyway. So Russia gave away its aviation sector just like that. The Soviets used to be the second largest airplane producing nation, and modern Russia produced zero civilian transport aircraft last year.
Click to expand...
FT and NYT clearly stated, this ban is in response to China's export control of Rare Earth and critical metals. this thing created global shortfall.. Trump wants a deal with China on RE export control. so he paused Engine sales.

@ACuriousPLAFan ..
 
G

gelgoog

Lieutenant General
Registered Member
sunnymaxi said:
FT and NYT clearly stated, this ban is in response to China's export control of Rare Earth and critical metals. this thing created global shortfall.. Trump wants a deal with China on RE export control. so he paused Engine sales.
Click to expand...
That is just an excuse. The US is already claiming victory in the trade war, they claim they got 10% tariff on their products while China has to eat 30% tariff. They think they can push China around some more.
Boeing does not want competition, that is the real reason.
Every penny spent on US airplanes and engines goes straight to the US MIC to develop weapons to counter China. The faster China drops these imports the better.
Boeing makes the F-15EX, F/A-18 Super Hornet and the F-47. GE makes fighter engines.
 
Last edited:
You must log in or register to reply here.
Top