China has reportedly committed to purchasing 200 jets from Boeing, as announced by U.S. President Donald Trump during an appearance on Fox News Channel. The figure is significantly lower than what analysts had anticipated, leading to a 4.1% drop in Boeing’s shares during Thursday’s market trading. The specifics of the transaction, including the delivery timeline and the types of aircraft involved, remain undisclosed. This development comes amidst expectations of a larger agreement, which sources suggested could have involved around 500 planes, coinciding with a meeting between Trump and Chinese President Xi Jinping.
During his conversation with Fox News’ Hannity, Trump conveyed that Xi agreed to the jet order, emphasizing the significance of the “200 big ones.” The announcement was one among several anticipated business deals resulting from the high-profile summit, which was also expected to bolster a fragile trade truce initiated last October. This truce saw Trump halting significant tariffs on Chinese products, while Xi agreed to not disrupt the global supply of essential rare earth elements.
While the White House has not commented on the market’s reaction to the announcement, sources familiar with the negotiations indicated that talks initially included the possibility of acquiring 500 Boeing 737 MAX aircraft, along with additional orders for more costly widebody jets. In parallel, China has been engaged in discussions for a comparable order with European aerospace company Airbus, highlighting the ongoing competition between the two major planemakers for dominance in China’s lucrative aviation market. The nation, which became the world’s second-largest aviation market in the 2010s, is projected to need over 9,000 new aircraft by 2045, necessitating substantial orders from both Boeing and Airbus.
Boeing last secured a substantial order from China during Trump’s visit to Beijing in November 2017, when the country agreed to purchase 300 jets. However, relations between the two nations have since deteriorated, resulting in only 51 orders for Boeing, predominantly for freighters. Analysts note that China’s aircraft procurement often coincides with diplomatic summits, reflecting both political and business realities. According to aerospace investment analyst Matt Akers, while more orders could still emerge from this summit, current investor sentiment sees the deal as falling short of expectations.
Boeing’s CEO Kelly Ortberg and GE Aerospace CEO Larry Culp were part of the American business delegation that accompanied Trump to China, aiming to secure agreements or resolve ongoing disputes. President Trump has consistently urged countries to increase their purchases of Boeing aircraft during trade negotiations. Ortberg expressed his reliance on the Trump administration’s backing to finalize a major deal with China, as reported last month.