Why is Boeing hiring more engineers from India than China?

Boeing is significantly increasing its engineering recruitment in India compared to China, reflecting the US effort to reduce reliance on Chinese talent amid geopolitical tensions.

According to a South China Morning Post report, as of Wednesday, Boeing’s Careers site listed only five job openings in China, with three engineering positions available.

In contrast, India had 83 openings, including 58 engineering roles, representing nearly 19 times more engineering positions in India than in China. This disparity has persisted for at least a few weeks, added the report.

According to the report, citing Boeing, the company currently employs about 2,200 people in China and over 6,000 in India. Notably, India’s commercial aviation fleet is roughly one-sixth the size of China’s.

Many leading US companies are eyeing India as a growing hub to diversify manufacturing away from China. Recent remarks by a senior US official about prioritising Indian students for STEM fields suggest a broader strategy of leveraging India’s scientific talent alongside its manufacturing capabilities.

Boeing turning to India

Amid ongoing safety concerns and trade tensions with China, Boeing is increasingly turning to India for growth in engineering and design.

India, with its burgeoning civil aviation market, is seen as a key opportunity for Boeing.

In January, Boeing inaugurated its largest facility outside the US in Bengaluru, investing approximately $200 million in the Boeing India Engineering and Technology Centre (BIETC).

“Given that there is so much potential in India, we need to rapidly build an aircraft manufacturing ecosystem in the country,” said PM Modi at the centre’s inauguration.

Salil Gupta, Boeing India’s president, highlighted India’s unique position to support global aerospace needs, both in engineering and manufacturing.

“The Indian market is an opportunity like no other, not just because of the opportunity to serve civil aviation and defence customers, but also because of the capability to support aerospace globally – both in engineering and manufacturing,” South China Morning Post quoted Gupta as telling Forbes India last year.

South Asia’s demand for aircraft is expected to rise significantly, with a need for 2,835 new aircraft by 2043, driven by India’s growth as the third-largest domestic airline market globally.

Amitendu Palit, a senior research fellow at the National University of Singapore’s Institute of South Asian Studies, said Boeing’s increased presence in India aligns with the “China plus one” strategy to diversify business operations.

“India and the US are collaborating extensively on defence and technology, along with many other areas, including aerospace. (Boeing’s) greater role in India matches this idea of collaboration,” Palit told South China Morning Post, pointing out that Airbus was also expanding its presence in India.

“India is expected to emerge as a hub in aerospace manufacturing given its domestic demand, gradual growth as an aviation service hub for the Indo-Pacific, and a convenient location, other than China, for third-country exports,” Palit added.

China link to Boeing’s success

China’s engineering expertise has been integral to Boeing’s success in forming a duopoly with Airbus in the global aircraft market.

In 1916, Boeing hired Wong Tsu, a Beijing-born aeronautical engineer and MIT graduate, who played a crucial role in designing the Model C naval training seaplane, laying the foundation for Boeing’s future passenger planes, reported South China Morning Post.

Since the 1970s, Boeing has maintained a strong presence in China through various joint ventures, including engineering, maintenance, and research centers, and a 737 completion and delivery center.

However, in response to queries about future technical roles in China, a Boeing China representative told South China Morning Post that the company does not disclose future hiring plans.

Competition for Boeing

Boeing has faced turmoil recently, particularly following the 2018 Lion Air and 2019 Ethiopian Airlines crashes, which led to the grounding of the 737 Max and a significant reputational hit.

Although the company resumed 737 Max deliveries to China after addressing safety issues, the Chinese market has begun focusing on its own domestic aircraft, such as the C919 from the Commercial Aircraft Corporation of China (Comac), which aims to compete with Boeing and Airbus.

China is poised to become the world’s largest aviation market in the next two decades, with Boeing projecting a need for 8,830 aircraft deliveries by 2043.

Question mark over Boeing’s China plans

Despite Boeing’s commitment to China as a top market priority, future expansions of the company’s workforce there remain unconfirmed.

Since its introduction to the Chinese market in the 1970s, Boeing has had substantial involvement in Chinese aircraft manufacturing, including joint ventures and partnerships.

However, with China’s domestic industry advancing and competition intensifying, Boeing is focusing more on India for its aerospace development and market potential.

In recent years, Boeing has struggled with safety issues and quality control problems, including software failures and outsourcing concerns.

According to a Bloomberg report in 2019, the company had outsourced coding for Max software to temporary workers to cut costs – particularly from India.

A former Boeing software engineer told Bloomberg that the company had hired recent college graduates from Indian companies to work on coding, who helped develop and test software for flight displays and flight-testing equipment.

Although Indian engineers contributed to some software development, Boeing has stated that these engineers were not involved in the systems linked to the 737 Max crashes.

China’s domestic passenger flow ranks third globally but is projected to become the largest by 2043. South Asia’s passenger traffic, currently ranked 14th, is expected to climb to seventh place by the same year, reflecting the region’s rapid growth in civil aviation.

With inputs from agencies