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U.S. companies Ford and Boeing are moving forward with expansion plans in China betting big, even though the economic slowdown is growing in the country.
Boeing will start construction on its first plane factory overseas before the end of March and has a goal of delivering 100 aircraft annually, with the first group expected in 2018 reported state media in China.
Ford the well-known automaker is also increasing in size in the largest economy in Asia with its plans of producing a new SUV in the country for customers there, before the end of 2019, said a spokesperson for the company.
The new SUV is to be built in the city of Chongqing and will put Ford head to head against other foreign car brands with operations in China like Mercedes-Benz.
The transportation industry in China is booming, it is already the biggest auto market as well as manufacturer annually in the world, and commercial airlines are rushing to add more routes as airports are opening throughout the country.
Major businesses such as Ford and Boeing are looking for opportunities to gain more market share, despite a drop in growth in the second largest economy in the world.
Lincoln, the luxury brand of Ford has become popular amongst the Chinese the past year, as the company increased sales growth for the brand by 180% after selling 32,550 vehicles. In order to meet that demand, Lincoln doubled its footprint in China during 2016 to 65 Lincoln locations and seven branches.
The company, based in Michigan, will continue exporting its Lincoln vehicles directly from North America and that includes the Lincoln Continental the flagship luxury sedan of the line.
The new factory of Boeing will focus on the finishing of both the interior as well as exterior of the popular commercial 737 line along with delivery to customers in China.
The plant, which is a joint venture with Commercial Aircraft Corporation of China that is state owned, was announced back during 2015 and will be in the city of Zhoushan in the northeastern part of China. The factory is projected to produce over 2,000 new jobs reported state media in China.
The new plans by Boeing will help it to catch its rival Airbus, which in 2008 became the first company from Europe to open an assembly line outside of Europe and since then has delivered hundreds of A320 jets from its Tianjin facility.