Prime Highlights
- China’s reluctance to buy Boeing stems from concerns over guaranteed after-sales maintenance and the threat of US parts embargoes.
- Boeing CEO Kelly Ortberg and GE Aerospace chief Larry Culp travelled to China alongside Trump to pursue deals.
Key Facts
- Boeing is one of the world’s largest aerospace manufacturers, producing commercial jets, military aircraft and space systems.
- Chinese airlines averaged 127 Boeing orders per year between 2005 and 2017, dropping to just six annually between 2018 and 2025.
Background
According to US President Donald Trump, China has agreed to buy 200 planes from Boeing, and the deal may increase up to 750 planes in total, as reported in the third week of May. The jets will carry GE Aerospace engines.
Trump described the deal as an initial commitment of 200 aircraft, adding that up to 750 planes could follow if things progress well. The order includes Boeing’s 777 and 737 models. Further details on delivery timelines were not immediately available.
Boeing confirmed the initial commitment and said it expects more orders to follow. The company said it looks forward to continually addressing China’s aircraft demand. Boeing CEO Kelly Ortberg and GE Aerospace chief Larry Culp were part of a group of American executives who accompanied Trump to China to pursue deals and resolve business disputes.
If finalised, the deal would mark Boeing’s first major Chinese order in nearly a decade. Boeing had largely been shut out of China’s aviation market amid trade tensions between Washington and Beijing. Aviation intelligence firm IBA estimates the 200-aircraft order is worth between $17 billion and $19 billion, rising to $25 billion if a larger share involves widebody jets.
An order exceeding 500 planes, if it materialises, would surpass IndiGo’s 500-aircraft Airbus deal, making it the largest in aviation history. The purchase would likely be divided among China’s three major state-run carriers.
However, Boeing’s shares fell around 2.6 per cent on the day of the announcement, as the initial order size came in below analyst expectations of at least 500 narrowbody jets.
