- The announcement comes after US President Donald Trump’s visit to Beijing.
- Boeing highlights the agreement as a major milestone for the U.S. aviation industry.
- The company says the deal marks the reopening of the Chinese market for aircraft orders.
The aerospace giant Boeing confirmed on Friday that China had committed to purchasing 200 aircraft, as US President Donald Trump had already announced during his visit to Beijing.
“We had a very successful trip to China and achieved our primary goal of reopening the Chinese market to orders for Boeing aircraft,” the company, whose CEO Kelly Ortberg was part of the US delegation to China, said in a statement.
“This included an initial commitment for 200 aircraft, and we expect more commitments to follow after this initial tranche,” Boeing said, thanking the Trump administration “for making this milestone a reality.”
“We now hope to continually address China’s aircraft demand,” he said.
China’s last order from Boeing dates back to 2017, when Trump traveled to Beijing at the beginning of his first term in the White House. At the time, it ordered 300 single-aisle, wide-body aircraft, a mega deal valued at $37 billion.
On Thursday, Trump addressed Boeing’s new commitment, telling Fox News host Sean Hannity in an interview, “I think it was a commitment.”
“There are many jobs,” added the president.
Speaking to reporters aboard Air Force One as he flew home from China, Trump said the deal included “a promise of 750 planes, which will be by far the largest order ever placed, if they do a good job on the 200.”
American media have reported for several months that Beijing was close to placing a major order with Boeing that would include 500 single-aisle 737 MAXs and around 100 larger 787 Dreamliners and 777s.
“He (Xi) committed to 200 Boeings, big ones, 777s and 737s, and a lot of big, big, big, beautiful Boeing airplanes,” Trump said in the Fox News interview broadcast Friday night.
For China, such a large order would ensure the ability to continue growing its aviation market as production of its homegrown COMAC C919 narrowbody aircraft falls short of ambitious targets.
It would also help Boeing close the gap with rival Airbus, which has made strides in China in recent years.
An estimate from aeronautical intelligence and advisory firm IBA puts the value of the 200-plane order at approximately $17 billion to $19 billion, assuming 80% of the mix is made up of MAX aircraft.
“This figure, however, could rise to $25 billion if a larger proportion (around 40%) of the total order is announced for wide-body aircraft,” said IBA’s Samuel Kenekueyero.
The deal would be a much-needed victory for Trump, whose aggressive tariffs and other trade policies have so far failed to reduce America’s large trade deficit.
An order for more than 500 aircraft, if it materializes, would be the largest in aviation history, surpassing IndiGo’s deal for 500 narrowbody Airbus aircraft, although China’s purchase would likely be split among its three main state-owned carriers.
Order size below expectations
Shares of the American plane maker fell nearly 4% on Thursday after Trump told Fox News that China had agreed to buy 200 planes, well below analysts’ expectations. They fell about 2.6% on Friday, while GE Aerospace shares fell 2%.
Industry sources have said Boeing was originally in negotiations for at least 500 narrow-body jets tied to the Beijing summit, with dozens of wide-body jets and potentially up to 200 to follow at a later date.
Trump said Xi would visit Washington again in September, implying he could become the focal point for the next tranche of potential aircraft orders.
However, concerns about after-sales support have weighed on purchasing decisions, said Li Hanming, an independent expert on China’s aviation industry.
“The reason why China is not buying is very simple: no one wants to buy something without guaranteed maintenance and after-sales support. Last May, the United States was still threatening restrictions on the export of spare parts. If they impose spare parts embargoes like that, who would still dare to buy Boeing?”
