China’s ministry of commerce on Monday formally announced that it signed an order to buy 200 Boeing passenger aircraft along with engines and spare parts. This is the largest order from Beijing to the American aviation giant since 2017, effectively ending an unofficial freeze on sales that had lasted nearly a decade. (faktor)
The deal was announced following the summit between Donald Trump and Xi Jinping in Beijing last week, which was also attended by Boeing’s CEO, Kelly Ortberg, as part of the American business delegation. According to Chinese authorities, the order is being fulfilled on a “commercial basis” and in line with the needs of the domestic aviation industry.
Trump previously stated that the deal could be expanded to as many as 750 aircraft, while analysts at IBA estimate the current package is worth between $17 and $19 billion, potentially reaching $25 billion if a larger share of the order involves wide-body models. A significant portion of the deliveries is expected to be from the 737 MAX series. Additionally, the delivery of around 400 to 450 aircraft engines from American company General Electric has also been agreed upon.
In parallel, Washington and Beijing are negotiating an extension of the current trade truce, which expires in November, as well as mutual tariff reductions on goods worth approximately $30 billion. Both sides also agreed to establish a joint trade and investment council.
Despite the significance of the deal, some analysts point out that the figure falls short of the expected 500 or so aircraft, and it remains unclear how much of the order represents new sales versus previously announced deliveries now repackaged into the new agreement.
