Inside China Business Airbus, Boeing, and the Pentagon have a Russia-China problem: we need their titanium to build planes
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Geopolitical tensions and the Ukraine War have prompted Western governments and companies to disclaim raw materials purchases from suppliers in Russia and China. But closer analysis of buying patterns reveals, instead, that there are no substitutes for many key materials inputs.
Even for the most critical sectors, such as commercial and military aviation, where national security laws forbid sourcing from unfriendly countries, waivers are routinely issued so that production can continue. Airbus, Boeing, and even the Pentagon simply pass along their requirements to third parties and intermediaries, who then place orders from Russian and Chinese suppliers.
These practices drive up prices, and merely add complexity and delivery times without real diversification. But they serve a public relations function: they allow for top corporate and government officials to claim that they cut off business with Russia and China, without doing so.
Resources and links:
Reuters Exclusive: To help Airbus, Macron pressed Canada to ease Russia titanium sanctions
Graphic, “One company makes Russia a global titanium powerhouse“, from the Washington Post and the US Geological Survey
Two years after start of Ukraine war, Russian titanium keeps flowing to West
Closing scene, The Ruins of Saint Paul’s, Macau
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