American aircraft manufacturer Boeing will open a 737 finishing facility in China to cope with increased production of the single-aisle jetliner.
The new facility will paint, finish and deliver 737 jetliners built at Boeing’s factory near Seattle.
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Boeing has not given any details of the plan but has said it will not be cutting jobs at its US operations.
Boeing chief executive Dennis Muilenburg was quoted by Reuters as saying: "As we ramp-up capabilities in China, including additional 737-related work, the actions that we’ll take are actions that will also allow us to grow jobs here in the US."
Boeing Commercial Airplanes chief executive Ray Conner said: "These discussions are at a sensitive stage."
"I hope [it] will be a win for Boeing, a win for the Puget Sound, and a win for our stakeholders.
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By GlobalData"I want to assure you that agreements we may reach with our Chinese partners will not result in layoffs or reduce employment for the 737 programme in Washington state."
The new plan has triggered huge provocation among nearly 35,000 Boeing employees in Washington.
International Association of Machinists leaders released a statement that said: "We have asked the company for details of what is intended with ‘collaboration’ and have not received any information on the proposed collaboration, or to confirm or dispute the media reports.
"While we don’t know specifics…any shift of aerospace jobs from our bargaining unit or Washington state causes grave concern."
Boeing has had its presence in China since last 42 years and is expected to continue expanding its business there.
Boeing chief executive Dennis Muilenburg said "Boeing cannot compete unless we have a global-scale, global diversification strategy, a strategy that accounts for collaboration in all parts of the world.
"We must continue to expand in that direction."
