Trump: China to Buy 200 Boeing Jets

US President Donald Trump has announced that China will buy 200 Boeing jets, with the potential for the order to rise to 750 planes. The planes will have GE Aerospace engines. Trump made the statement on Air Force One on Friday.

Deal Details

The deal includes approximately 200 planes and a promise of up to 750 if they do a good job, according to Trump. More details about the deal, such as which type of jets and when the order would be delivered, were not immediately available. Neither the Chinese government nor Boeing issued statements confirming the purchase agreement.

Impact and Value

The order would be a significant breakthrough in a market that was once central to Boeing's long-term growth. An estimate from aviation intelligence and advisory firm IBA put the value of the 200-aircraft order at roughly $17bn to $19bn, assuming 80 percent of the mix is made up of MAX jets. This number could increase to $25bn if a larger proportion of the total order is announced for the widebody aircraft.

Industry Reaction

Shares of Boeing had dropped nearly 4 percent on Thursday after Trump told Fox News Channel China had agreed to buy 200 jets, well below analysts' expectations. Industry sources have said Boeing was originally in negotiations for at least 500 narrowbody jets tied to the Beijing summit, with dozens of widebody jets and potentially as many as 200 to follow at a later date.

Trade Implications

The deal would be a much-needed win for Trump, whose aggressive tariffs and other trade policies have so far failed to make much of a dent in the large US trade deficit. However, concerns about after-sales support have weighed on buying decisions, said Li Hanming, an independent expert on China's aviation industry.

Key points

• China has agreed to buy 200 Boeing jets, with a potential for up to 750 planes.
• The planes will have GE Aerospace engines.
• The deal's value is estimated to be roughly $17bn to $19bn.
• The order would be a significant breakthrough in a market that was once central to Boeing's long-term growth.
• Boeing was originally in negotiations for at least 500 narrowbody jets tied to the Beijing summit.
• The deal would be a much-needed win for Trump, whose aggressive tariffs have failed to make a dent in the US trade deficit.