Boeing factory will soon land in China

Plans for setting up a Boeing factory in China has been submitted to the Beijing Government. It was reported Tuesday by the state-run media ahead of President Xi Jinping's U.S. visit, where he will tour one of its plants.

A Boeing factory in China represents an about-turn in the U.S. huge strategy in the crucial market, where Airbus, European rival has its final assembly operation for medium-range airbus 320 aircraft situated in the northern port of Tianjin and is planning to open a new completion and delivery center for long-haul A-330s, as reported by Japan Today.

The Boeing plant will land in Zhoushan located in the eastern province of Zhejiang if the submitted proposal to the State Council and China's cabinet will be approved, according to Shanghai Securities News. The city lies in the Yangtze River delta on the East China Sea and borders the commercial hub of Shanghai.

The factory will be the centerpiece of a new aerospace industrial zone in the city making China to expect additional of 6,330 new aircraft worth $950 billion to its commercial fleet by 2034, said Boeing last month in its annual China Current Market Outlook.

Boeing was exploring whether to open a factory in the said country to perform tasks such as painting its top-selling 737 jetliners. If permitted, it will be the first facility outside the U.S., as reported by the Bloomberg News earlier this month.

According to Boeing Co. Chief Executive Dennis Muilenburg, he sees scope for additional 737 works going to China as the company continually increases production rates of the single-aisle jetliner, as reported by the Economic Times.

"As we ramp up capabilities in China, including additional 737-related work, the actions that we'll take are actions that will also allow us to grow jobs here in the U.S.," he said at an aerospace conference in Seattle organized by SAE International.

He did not give the full details or the specifics of Boeing's proposed 737 finishing facilities in China. It is expected to be announced by Chinese President Xi Jinping's visit to Seattle this week.