This AP story on Aviation.com has a troublesome lede. Check it out: “China plans to set up its own company to make passenger jumbo jets, making it less dependent on Boeing and Airbus, official Xinhua News Agency said Thursday.” (Emphasis added.) I’ve blogged previously about China’s aerospace ambitions. Here, the reporter errs in his word choice. China and its airlines are not dependent on Western jumbo jet manufacturers any more than any other airline. Dependency does not bear on fair commercial transactions. A Chinese airline pays for an Airbus product, and both sides theoretically benefit. Dependency assumes that one party to a deal is a benefactor — a very different relationship than that between a vendor and a customer. Unfortunately, what China will do is make its airlines more dependent on the state-run Chinese aerospace firms.
And here is the second error in the article — or at least what should be a category error. Paul Krugman famously argued that countries don’t compete; firms do. The reporter should not be referring to China, Airbus, and Boeing in the same category. But China’s state-run aerospace firms make the country virtually identical to the firm. Here, the country is competing with the firm. The media have a regrettable habit of treating Airbus and Boeing as national proxies, but China has a regrettable habit of actually having state proxy companies.
