China has committed to purchasing 200 jets from Boeing, as announced by U.S. President Donald Trump during a Fox News Channel appearance on Thursday. This figure fell short of expectations set by analysts and resulted in a dip in Boeing’s stock, with shares dropping 4.1% in market trading. While the specifics of the transaction, including delivery timelines and the types of aircraft involved, remain undisclosed, the deal is significantly smaller than the anticipated 500-plane package discussed prior to the meeting between Trump and Chinese President Xi Jinping.
The agreement was one of several business deals anticipated at the summit, which also aimed to extend a fragile trade truce initially reached in October. During that period, Trump had suspended hefty tariffs on Chinese imports, while Xi agreed to maintain the global supply chain for crucial rare earth elements. Despite the announcement, the White House has yet to comment on the Wall Street response to this development.
Sources familiar with the negotiations indicated that the talks initially involved 500 Boeing 737 MAX jets, with the potential for additional widebody aircraft orders post-summit. China is also engaged in discussions with European aircraft manufacturer Airbus for a deal of similar scale. Both Boeing and Airbus are vying for dominance in China’s aviation market, the second-largest globally, as the country is projected to require around 9,000 new aircraft by 2045.
Historically, China has used diplomatic events to announce major aircraft purchases, which often reflect broader political dynamics. Chinese airlines’ aircraft acquisitions require governmental approval and are frequently tied to high-level diplomatic engagements. Matt Akers, an aerospace investment analyst, noted that while further orders might emerge from this summit, the current investor sentiment is one of disappointment due to the lesser-than-expected announcement.
The last significant Boeing order from China occurred during Trump’s visit to Beijing in November 2017, with a commitment to purchase 300 jets. Relations between the two nations have since deteriorated, resulting in Boeing securing only 51 orders, predominantly for freight aircraft. Boeing’s CEO Kelly Ortberg and GE Aerospace CEO Larry Culp were among the U.S. business leaders accompanying Trump, with hopes of finalizing deals or resolving ongoing disputes. Ortberg has previously expressed reliance on the Trump administration’s support to secure substantial agreements with China.