Strategies Available to Companies in Political Disputes: A Study of Boeing's Problems in the U.S.-China Political Confrontation

Abstract

Since the disintegration of the Soviet Union, the world's second largest economy at the time, the ever-growing China has begun to attract the attention of the United States. The United States has used various methods such as trade wars and wooing China's neighboring countries to contain China's development, and at the same time, the geopolitical conflict between China and the United States has become increasingly fierce. While the U.S. approach has curbed China’s economic growth, it has also adversely affected U.S. companies such as Boeing that have cooperated with China. This paper analyzes the impact of geopolitical tensions on Boeing and what Boeing can do to reduce the impact of geopolitics on the Boeing commercial aircraft market. To answer this question, this paper conducted a market position analysis of Boeing, studied official Boeing reports and other papers, and analyzed Boeing in terms of market and non-market aspects. The results show that U.S.-China geopolitical conflict has reduced Boeing's trade with China. The results also suggest that there is hope for a improve of Boeing's relationship with China if Boeing uses appropriate market strategies as well as non-market strategies.