Trade Tensions Clip Gulfstream's Wings in China

Gulfstream Aerospace faces challenges in expanding business jet deals in China due to U.S.-China trade tensions. Despite this, the company plans to grow jet production through 2029, driven by strong U.S. demand and new models. A recent meeting eased some tensions, but uncertainties persist.

Gulfstream Aerospace, a key player in the corporate aviation sector, is experiencing a slowdown in business jet deals within China due to ongoing U.S.-China trade tensions. This development marks a notable exception in an otherwise vigorous global private aircraft market.

Despite hurdles in China, Gulfstream Aerospace, a division of General Dynamics, remains on track to boost production until 2029. The company, buoyed by robust U.S. demand, is introducing new aircraft models to maintain its competitive edge, according to President Mark Burns.

Burns highlighted the resilience of affluent American consumers and increased demand from Fortune 500 companies as critical growth factors. Meanwhile, recent diplomatic efforts between U.S. and Chinese leaders have shown promise in alleviating trade strains, potentially opening avenues for future growth in China.

(With inputs from agencies.)