China has committed to purchasing 200 Boeing aircraft, as announced by U.S. President Donald Trump during an appearance on Fox News. This number falls short of the expectations set by analysts, who anticipated a larger order. Consequently, Boeing’s stock experienced a 4.1% decrease in market trading on Thursday. Specifics regarding the delivery timeline and the types of jets involved in the deal have not been disclosed. Prior to the meeting between Trump and Chinese President Xi Jinping, discussions were reportedly centered around a potential 500-plane agreement.
The intended order was expected to include 500 Boeing 737 MAX jets along with additional widebody jets in subsequent orders. This transaction was one of several business deals anticipated from the summit, which also aimed to extend a trade truce established in October of the previous year. During that period, Trump had suspended significant tariffs on Chinese imports while Xi had refrained from restricting the global supply of critical rare earth elements. The White House has yet to comment on Wall Street’s response to the announcement.
Competition between Boeing and European rival Airbus has intensified, as both companies vie for sales in China, the world’s second-largest aviation market. Airbus has previously gained an upper hand, even establishing a final assembly plant for its A320 model in Tianjin. China must place orders with both manufacturers to meet the increasing demand for air travel, which analysts estimate requires as many as 1,000 new planes in the near term. By 2045, projections from both Boeing and Airbus indicate that China will need at least 9,000 new jetliners.
China’s last significant order from Boeing occurred during Trump’s visit to Beijing in November 2017, when an agreement was reached for 300 jets. Since then, diplomatic tensions between the two nations have led to a reduction in orders, with Boeing receiving only 51, primarily for freighters. Analysts note that China has a history of aligning aircraft purchase announcements with diplomatic events, reflecting the political climate more than the contractual realities. Government approval is required for Chinese airlines to buy planes, with decisions often linked to diplomatic visits.
Despite the reduced order size, there remains optimism for additional agreements during this trip. Boeing CEO Kelly Ortberg and GE Aerospace CEO Larry Culp joined Trump on his visit to China, aiming to secure deals or address existing disputes. Trump has been a strong advocate for increasing Boeing’s international sales during trade discussions, and Ortberg previously expressed reliance on the administration’s support to finalize a major deal with China.