(Editor’s note: This story has been updated to include Boeing’s statement)
China has agreed to buy 200 Boeing (NYSE:BA) planes in a deal that could eventually expand to as many as 750 aircraft, President Donald Trump said on Friday, potentially marking the U.S. planemaker’s biggest breakthrough in the world’s second-largest economy in nearly a decade as trade tensions between Washington and Beijing begin to ease.
Speaking aboard Air Force One, Trump told reporters the agreement “includes approximately 200 planes and a promise of up to 750 if they do a good job,” and the jets will be powered by GE Aerospace (NYSE:GE) engines, though details on aircraft types and delivery schedules were not immediately disclosed, according to a Reuters report.
A Boeing spokesperson told Benzinga in an emailed statement that the company expects “further commitments” after the initial orders. “We now look forward to continually addressing China’s aircraft demand,” the spokesperson added.
GE Aerospace did not immediately respond to Benzinga‘s request for comment.
Boeing Reopens Door To China
Boeing’s shares had dropped nearly 4% on Thursday after Trump told Fox News Channel that China had agreed to buy 200 jets, which was well below analysts’ expectations. They closed down about 3.8% on Friday, while GE Aerospace shares fell 3.4%.
If finalized, the order would represent Boeing’s first major Chinese aircraft deal since Beijing sharply curtailed purchases amid years of U.S.-China trade friction. The last major Boeing order from China dates back to 2017.
Boeing CEO Kelly Ortberg and GE Aerospace boss Larry Culp were among the group of American executives who accompanied Trump to China this week, in a bid to ink new business deals and resolve disputes.
Trump told Fox News on Friday that China’s package includes Boeing’s 777 and 737 aircraft models.
“He (Xi Jinping) committed to 200 Boeings, big ones, 777s, and 737s, and a lot of big, big ones, big, beautiful Boeing planes,” Trump said.
Airbus Pressure Mounts
The deal would help Boeing regain ground in China, where rival Airbus SE (OTC:EADSY) (OTC:EADSF) has significantly expanded its market share in recent years.
The U.S.–China tariff dispute escalated sharply during Trump’s first term, prompting Beijing to halt Boeing deliveries and restrict new aircraft orders over the subsequent years. Chinese airlines were ordered to seek approval for Boeing deliveries and ended up shifting more toward Airbus during that period.
Still, concerns remain around U.S. export restrictions and after-sales support for Boeing aircraft, industry observers told Reuters.
According to Benzinga’s Edge Rankings, Boeing’s stock shows strong momentum but weak value metrics, while the stock’s price trend remains positive short- and long-term despite medium-term weakness.
Image via Shutterstock
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