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The global economy giveth and the global economy taketh away

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These two stories had to be placed side-by-side, because while they are unrelated in subject matter, they are very related. Access to China is tops on the minds of every aerospace company on Earth and with the Comac ARJ21 coming online and the C919 not far behind, what happens to joint ventures with Chinese companies once domestically made competing products are available is anyone's guess, but this episode may serve as a guide for the future.

Shot:
"Very few customers today are willing to purchase aerospace products or services without expecting some form of industrial partnership, through global supply chains".
-Boeing CEO Jim McNerney
McNerney tells unions Boeing's global supply chain is crucial
Seattle Times
October 7, 2010
Chaser:
Brazil Doesn't Expect China To Approve Embraer Plans To Stay
Wall Street Journal
October 7, 2010

SAO PAULO (Dow Jones)--Brazil's Empresa Brasileira de Aeronautica SA (ERJ, EMBR3.BR) likely won't get authorization from China to change over production lines, meaning the company will probably close its factory in the Asian country in 2011, a person in the Brazilian government said Friday.

Embraer, as the world's fourth-largest plane maker is known, is phasing out construction of its 50-seat ERJ-145 plane after it delivers the last of its orders in March. Embraer sees no demand in the region for the smaller airplane and is seeking authorization from China's government to begin production on larger, 120-seat planes, the company's press office said Thursday.

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