Question

Should Boeing and other companies go along with China’s terms, or should they risk losing sales by refusing to transfer technology?

Answer 1

As long as the technology does not divulge any military advantage, the decision is up to Boeing. China is Boeing's biggest customer for commerical jets, and aircraft is one of the few industries (along with agriculture, lumber, coal, and recyclable waste products) for which America has an export advantage. Boeing needs to make money and sell planes; otherwise Airbus will get the business. I believe they should sell to China, and that is ahwt they are doing.

Boeing is likely to maintain its strategic edge in that industry by continuing to sell planes to China, and outsourcing parts and subassemblies to countries where they can be built more cheaply, including China.