In a move to try and boost sales to a key market, Boeing Co. has appointed a Chinese national to head up its China arm. Although few details have been released, Alvin Liu is from Liaoning Province in the north-east region of China. He previously worked in the auto industry.
Boeing is currently witnessing a drought in demand from China, despite the American planemaker having estimated that over the next 20 years China will need 8,500 new airplanes and approximately US$550 billion in services.
China was first to ground the stricken 737 MAX after the second fatal crash and was one of the last to remove restrictions on the aircraft. However, despite the 737 MAX once again taking to the skies above China, imports of the jet into China have slowed and geopolitical tensions between China and the US have exacerbated the problem.
“I am committed to making sure our team is ready to support our customers and meet that demand,” Liu said in a release. He succeeds Boeing veteran Sherry Carbary, who stepped down from the position of President of the China unit in July. Liu then took up the position on an interim basis. He joined the company in 2022 from the auto industry, where he had gained experience in China working with Ford and Chrysler.
Boeing has struggled to compete with its close rival, Airbus, who has recently announced a second aircraft assembly line in Tianjin. Li Hanming, an independent aviation industry analyst, said Liu is the best choice for Boeing as it seeks to rebuild close ties, in part because he is physically in China. “It is very difficult to apply for working visas and send over senior executives from overseas,” Li said. Experts say processing of visa applications has slowed since the pandemic.
