Inside China / Business

Kevin Walmsley  May 2, 2025

The Pentagon and Congress are concerned that Boeing’s safety, legal, and financial troubles leave the Defense Department vulnerable in event of the company’s bankruptcy.

But while Boeing’s poor management and engineering problems are grave in the short term, it is China’s decisions to cut off Boeing from key supply chains that will doom the company.

Boeing is the archetypal buyer of “dual-use” technologies and materials from China, which are used in both civilian and military sectors. China has monopolies on heavy rare magnets, and the REM that are required to build them.

These magnets are crucial in avionics systems for passenger jets, but even more so for advanced military systems, hypersonic missiles, and stealth aircraft.

China closed export markets for all these dual-use technologies. Boeing and other Pentagon contractors will be unable to fulfill the multi-billion dollar contracts, now that they’ve been cut off from China’s supply chains.

Continued at link below:

https://kdwalmsley.substack.com/p/china-is-killing-boeing-part-ii-as