CHINA REVIEWING 737 MAX

President Joe Biden last month warned China would face “repercussions” for human rights abuses and said the United States would reassert its global role in speaking up on such issues.

Boeing’s most pressing concerns in China, analysts say, include the fate of its 737 MAX passenger jet, which was grounded worldwide for almost two years after two fatal crashes.

U.S. regulators approved the jet to fly again in November, followed by Europe and major markets apart from China, whose regulator continues to voice major safety concerns.

China has promised a “step-by-step” approach toward approving the plane, but Western industry sources say concerns are growing that the technical process could become mired in the growing diplomatic standoff between Beijing and Washington.

Calhoun said Boeing had carried out a “top-to-bottom” overhaul and “turned the place upside down” as it learns lessons internally from the crashes, which killed a combined 346 people.

The comments appeared designed to allay concerns from lawmakers and industry leaders, including the head of Dubai’s Emirates airline, who told Reuters in January that Boeing should recognize “top-down culpability and accountability” over the MAX.

Airline president Tim Clark said he was confident the redesigned jet was safe, however.

Boeing last week urged the dismissal of an investor lawsuit which claims Boeing’s board, where Calhoun served for a decade before becoming CEO in 2020, failed to monitor safety. It denied negligence and said the complaint ignored corporate controls.

Boeing has separately told employees that safety and quality metrics will be added to a general incentive compensation plan.

(Reuters)