Sputnik asked Dr James Wang, professor of the Department of Economics and Finance at the University of Hong Kong what economic consequences this decision may have.
Sputnik: In your view, how can China's statement about suspending their Boeing 737 MAX aircraft impact relations with the US?
Dr James Wang: I am not sure the decision to ground all 737Max in China is politically motived or it would be seen as political. Thus, I do not anticipate significant impact of this division on Sino-US relations.
Sputnik: Two-thirds of the Boeing 737 fleet flown in Asia Pacific are based in China. If the grounding is long-term, what economic consequences can it have?
Dr James Wang: No doubt there will be sizeable economic ramifications arising from a prolonged grounding of close to 100 Boeing airplanes impacted by this decision. We will have to see if the grounding is temporary or not.
READ MORE: EU Aviation Safety Agency to Assess Risks After Ethiopian Boeing Crash — Speaker
Sputnik: The incident comes as the US and China are in the process of trade talks, in what way can these talks affect negotiations between the two countries?
The views expressed in this article are solely those of Dr James Wang and do not necessarily reflect the official position of Sputnik.