Airbus Opens Second China Assembly Line Amid Tight Race With Boeing

• The facility, located in the port city of Tianjin near Beijing, will be the firm’s 10th final assembly line globally and is set to become operational in early 2026.
• The opening of the Tianjin plant followed the opening of its second final assembly line in Mobile, Alabama.
• A prolonged trade war and easier availability of Airbus aircraft could jeopardize Boeing’s prospects in the world’s second-largest economy.

European planemaker Airbus has opened a new final assembly line in China to boost its manufacturing capacity of its popular A320neo series of jets.

According to a Reuters News report, the facility, located in the port city of Tianjin near Beijing, will be the firm’s 10th final assembly line globally and is set to become operational in early 2026.

Airbus Chief Meets China’s Commerce Minister

As per the report, Airbus CEO Guillaume Faury met with Chinese Commerce Minister Wang Wentao on Tuesday, ahead of the opening of the facility. During the meeting, Wang reportedly stated that rising economic fragmentation and unilateral, protectionist moves were unsettling global trade and adding instability and uncertainty.

The opening of the Tianjin plant followed the opening of its second final assembly line in Mobile, Alabama. This was reportedly done to not draw the ire of either of the two countries amid growing tensions between the U.S. and China.

Airbus aims to hit a monthly target of 75 deliveries for its best-selling A320 jets by 2027. However, a prolonged trade war and tariffs on original equipment manufacturers pose a threat to the planemaker’s ambitions of reaching the target.

Where Does It Leave Boeing?

U.S. President Donald Trump has threatened to use the planemaker as a negotiating tool with China. The President said earlier this week that China had “threatened [the U.S.] with rare earths,” but stated that tariffs were more powerful negotiating tools. “I could also threaten them with many other things,” he said. “They can’t get parts for their airplanes. We build their airplanes. We do a great job.”

Trump added that most of China’s commercial fleet relied on Boeing components. “They’re largely Boeing’s, and we could stop the parts. We did stop the parts,” he said, claiming that prior restrictions had grounded hundreds of aircraft.

Earlier in August, Bloomberg reported that Boeing was in talks to sell over 500 aircraft to Chinese airlines. A prolonged trade war and easier availability of Airbus aircraft could jeopardize the company’s prospects in the world’s second-largest economy.

What Is Retail Thinking About Boeing?

Retail sentiment on Stocktwits about Boeing was still in the ‘bearish’ territory at the time of writing, while traders were ‘bullish’ about Airbus.

Boeing's stock has gained nearly 22% this year, compared with 14.8% gains in the benchmark S&P 500 index.

Also See: Gold Edges Up After Sharp Drop As Trump Injects Caution Into China Trade Deal: 'Maybe ... Won’t Happen'

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