China has committed to purchasing 200 aircraft from Boeing, as confirmed by U.S. President Donald Trump during an interview with Fox News Channel. This figure, however, fell short of the expectations of many analysts, leading to a decline in Boeing’s stock by 4.1% on Thursday. Although the specifics of the agreement, such as the delivery schedule and types of jets, remain undisclosed, the deal is significantly smaller than the anticipated 500-plane package that was reportedly under negotiation prior to a meeting between Trump and Chinese President Xi Jinping.
Trump announced that the Chinese leader had agreed to order “200 big ones,” referring to the jets, during his appearance on Fox News’ Hannity. This development was part of a broader set of business deals expected as outcomes of the high-stakes summit, which also aimed to extend a fragile trade truce established in October of the previous year. At that time, Trump had halted the imposition of extensive tariffs on Chinese goods, while Xi refrained from restricting global supplies of critical rare earth materials.
Sources familiar with the discussions indicated that the negotiations initially focused on securing an order for 500 Boeing 737 MAX jets, with a potential addition of several high-value widebody planes in subsequent orders after the summit. Simultaneously, China has been engaged in discussions with European aerospace giant Airbus for a similarly large order, as both Boeing and Airbus compete intensely for dominance in China, the world’s second-largest aviation market. Historically, Airbus has capitalized on this rivalry, surpassing Boeing to become the market leader in the 2010s and establishing an A320 assembly plant in Tianjin.
Given China’s rapidly growing travel demand, analysts estimate the nation requires up to 1,000 new aircraft immediately, with projections from Boeing and Airbus suggesting that 9,000 new jetliners will be needed by 2045. The last major Boeing order from China occurred during Trump’s visit to Beijing in November 2017, when China agreed to purchase 300 jets. Since then, diplomatic tensions have strained relations, resulting in only 51 orders for Boeing, primarily for freighters.
Industry experts note that China often uses diplomatic events to announce high-profile aircraft orders, reflecting the political dynamics as much as contractual commitments. Aircraft purchases by Chinese airlines necessitate central government approval, often linked to diplomatic engagements. According to aerospace investment analyst Matt Akers, while further orders could still be announced, current investor sentiment suggests the outcome is less favorable than anticipated. Accompanying Trump to China were Boeing CEO Kelly Ortberg and GE Aerospace CEO Larry Culp, who aimed to secure deals and resolve ongoing disputes, with Ortberg relying on the Trump administration’s support to finalize a major agreement with China.