Airbus Advocates for Free Trade Amid Economic Tensions

By Sophie Yu and David Kirton

ZHUHAI, China (Reuters) – European planemaker Airbus defended free trade on Tuesday as the aerospace industry faces a growing cluster of economic tensions.

The CEO of the planemaker's China operations stated that Airbus is "very much pro free trade" and its presence in China showcases positive cooperation between Beijing and Europe.

Trade relations between the European Union and China have been strained due to a dispute over electric vehicles, while Airbus could face new tariffs following Donald Trump’s election victory, which promised widespread tariffs.

When asked about concerns regarding potential tariffs arising from escalating trade tensions between China and Europe, Airbus China CEO George Xu emphasized that the European group views free trade as essential for global prosperity. "We’re looking forward to seeing if there is some progress in these discussions," he mentioned, referring to ongoing negotiations between Beijing and Brussels over proposed EU tariffs on Chinese-made electric vehicles. "We are not afraid of competition and want to focus on developing the China market and partnerships with Chinese partners."

Airbus has surpassed Boeing as a supplier to Chinese airlines amid a trade rift between Washington and Beijing that began during Trump’s initial term.

The two aviation giants were involved in an 18-month trade war over aircraft subsidies between the EU and the U.S., which led to mutual tariffs affecting various sectors, including food and luxury goods, until a five-year truce was established in 2021.

TIANJIN DELAY

While speaking to reporters at China’s largest air show in Zhuhai, Xu mentioned that Airbus is deepening its industrial chain in China, an important aspect of Airbus' global footprint. Chinese companies produce components that are incorporated into all Airbus commercial jets currently in production.

The company aims for its Chinese industrial chain to serve global customers in addition to local ones, Xu commented.

Airbus established its official presence in China in 1994, and its first assembly line outside of its founding European countries was launched in Tianjin in 2008. The A320neo single-aisle family of passenger aircraft is now assembled in Tianjin.

Xu revealed that a quarter of the deliveries from Tianjin in 2024 are destined for non-Chinese airlines, including EasyJet and Wizzair.

Nonetheless, he hinted at a delay of several months in opening a second Airbus assembly line in Tianjin, which is now expected to begin operations at the start of 2026. This new line was agreed upon during a state visit to China by French President Emmanuel Macron in April 2023, aimed at enhancing access to China, the world’s second-largest aviation market.

Airbus CEO Guillaume Faury initially stated that the additional line would open in the latter half of 2025.

Xu indicated that the Chinese certification process for the A330neo jet is progressing smoothly, and the first delivery of this widebody model in China could occur in 2025. He also anticipated a rapid development for the A330 passenger-to-freighter conversion program in China.