Trump: China to Purchase 200 Boeing Jets in Major Deal
China has committed to acquiring 200 aircraft from Boeing Co., as stated by President Donald Trump, in a multibillion-dollar agreement that signifies the country’s inaugural purchase of US-manufactured commercial jets in almost ten years. Boeing shares experienced a decline of 4.8 percent, reaching a price of $229.13 as of 12:11 p.m. The specifics regarding the types of aircraft encompassed in the 200-plane order mentioned by Trump remain ambiguous. Chinese airlines were anticipated to place orders for up to 500 737 Max jets, in addition to several widebody aircraft. This week, Trump and Chinese President Xi Jinping are convening to discuss critical issues affecting the world’s largest economies, such as sanctions, trade barriers, and the ongoing conflict in Iran. Trump stated that China has consented to purchase 200 “big” Boeing jets. “Boeing aimed for 150, but they secured 200,” he added. A representative from Boeing has not yet provided a response to the inquiry for comment.
The agreement marks the culmination of extensive negotiations between Boeing and Chinese airlines, effectively concluding a prolonged period of order stagnation in the world’s second-largest aviation market. Reinstating sales to China would bolster the company’s financial position during a corporate restructuring spearheaded by Boeing’s Chief Executive Officer Kelly Ortberg, who is part of Trump’s delegation. It will also guarantee Chinese airlines access to US-built planes, as global demand for new jetliners exceeds manufacturers’ capacity to produce them. An order for 200 jets “is a disappointment for a market looking for 300 or more and details around type,” noted George Ferguson. Until the order receives confirmation from an airline, “it won’t go into the firm backlog and, in years past, agreements by the Chinese government for plane sales haven’t been consummated.” China has placed orders for only 39 Boeing planes this decade; if fulfilled, this could signal a resurgence in purchasing from the US, Ferguson noted. Since Trump’s visit to China in 2017, there has been no significant announcement regarding a Boeing order, with much of the prior deal already disclosed. Beijing generally procures aircraft from Boeing and its competitor Airbus SE in substantial quantities, subsequently allocating them to the state-owned airlines.
In January 2020, China pledged to purchase $77 billion in US-made goods, including aircraft; however, this commitment was not fulfilled as the Covid pandemic severely impacted air travel. Boeing ultimately ceded its market dominance in China to Airbus, influenced by escalating trade tensions and the prolonged grounding of the 737 Max. China was the first nation to ground the Max following two fatal crashes and did not permit it to resume operations until 2023, several years after the US Federal Aviation Administration authorized the model to return to the air. Since July 2022, prominent Chinese airlines have placed orders or made commitments for approximately 700 Airbus jets, which includes a significant acquisition of 137 aircraft by China Southern Airlines Co. and one of its subsidiaries, as announced in April. Nonetheless, Airbus has encountered challenges in China. In the previous month, the European aircraft manufacturer indicated that bureaucratic holdups in China had obstructed the transfer of nearly 20 aircraft, without providing further details on the complications involved.
China has developed its own jet that competes with the Airbus A320 and the Boeing 737, known as the C919. Despite the Commercial Aircraft Corp. of China Ltd.-built C919 securing over 1,000 orders, mainly from Chinese airlines, the increase in production and deliveries has been gradual. Since Trump’s return to the White House, Boeing has secured a significant number of orders, with these acquisitions playing a key role in trade agreements with nations including Saudi Arabia, Qatar, and South Korea. Trump has emphasized his contribution to Boeing’s sale of 1,000 planes. “Boeing awarded me the title of the greatest salesman in the history of Boeing, which was a nice little accolade,” Trump remarked during a White House business roundtable in December.
