Trump: China Orders 200 Boeing Jets, Falling Far Short of Expectations
Theo Al Jazeera English
US President Donald Trump announced that China has agreed to buy 200 Boeing jets, with a potential commitment rising to 750. However, neither Beijing nor Boeing has confirmed the deal, and the order size is far below analyst expectations, leading to a drop in Boeing shares.
US President Donald Trump said China has agreed to buy 200 Boeing jets, with the potential for the order to expand to 750 aircraft. He added that the planes will use GE Aerospace engines.
Speaking to reporters aboard Air Force One on June 16, Trump stated: “The deal includes about 200 planes and a commitment for up to 750 if they do well.” Specific details, such as the aircraft models and delivery timeline, were not immediately disclosed.
Neither the Chinese government nor Boeing has issued a statement confirming the purchase. The deal is seen as a significant breakthrough in a market that was once central to Boeing’s long-term growth, but the US manufacturer has been largely shut out due to trade tensions between Beijing and Washington. Typically, aerospace companies announce major contracts only after they are finalized.
Boeing CEO Kelly Ortberg was among the US executives joining Trump’s trip to Beijing to seek opportunities to sell products and services to China.
It remains unclear how many of the 200 aircraft announced by Trump are new orders and how many stem from previously backlogged orders.
People familiar with China’s purchasing habits say Beijing often mixes new orders with repeated announcements when unveiling trade packages tied to diplomatic visits by US and European leaders.
For China, a large order of this magnitude would secure capacity to continue growing its aviation market, even if domestic narrowbody COMAC C919 production falls short of ambitious targets.
The deal would also help Boeing close the gap with rival Airbus, which has taken the lead in China in recent years.
An estimate from IBA, an aviation consultancy and intelligence firm, puts the value of a 200-plane order at around $17-19 billion, assuming 80% are MAX aircraft. “However, this figure could rise to $25 billion if widebody jets account for about 40% of the total order,” said Samuel Kenekueyero of IBA.
The agreement is seen as a much-needed win for Trump, whose aggressive tariff policies and other trade measures have so far yielded little change to the US’s large trade deficit.
An order of more than 500 planes, if realized, would be the largest in aviation history, surpassing IndiGo’s 500-plane deal with Airbus, though China’s purchase might be split among three major state-owned airlines.
Order size falls short of expectations
Boeing shares fell nearly 4% on June 15 after Trump told Fox News Channel that China had agreed to buy 200 planes, far below analyst expectations. Boeing stock continued to decline about 2.6% on June 16, while GE Aerospace shares fell 2%.
Industry sources say Boeing was initially negotiating at least 500 narrowbody aircraft related to the Beijing summit, along with dozens of widebodies and possibly an additional 200 at a later stage.
Trump said Chinese President Xi Jinping would visit Washington in September, hinting that this could be the focal point for the next potential aircraft order.
However, concerns about after-sales support influenced the purchasing decision, according to Li Hanming, an independent expert on China’s aviation industry. “The reason China didn’t buy is very simple: no one wants to buy something without guaranteed maintenance and after-sales support. Last May, the US was still threatening to impose export restrictions on components. If they impose such parts bans, who would dare buy Boeing?”
Wendy Cutler, Vice President of the Asia Society Policy Institute and former Deputy US Trade Representative, said in an email to Al Jazeera: “What we expected and have not yet seen is not only China’s confirmation of aircraft purchases, but also other major Chinese buying, especially in agriculture and energy.”
Cutler also noted that the two sides did not agree to extend the trade ceasefire, which is set to expire in five months. “All these issues appear to remain on the table, so we may see further announcements in the coming days. If no more economic announcements follow, it may be concluded that this summit was heavy on atmosphere but light on substance,” Cutler said.
