Boeing has been said to be in talks with China, working towards finalising a deal to sell as many as 500 aircraft, as reported by Bloomberg. This impressive order would end an eight-year pause in sales, would establish the largest contract of the decade, and could form a significant milestone across both aviation and diplomacy.
Boeing and China in Negotiations
According to insiders, talks between Boeing and China are nearing a conclusion with the potential of up to 500 aircraft being ordered. While terms of the sale are still in conversation – including types of aircraft, volume, and delivery schedules – this deal would be the largest made this decade, which demonstrates the immense growth of the aviation sector.
This order would allow Boeing to bridge the gap with their competitors, Airbus, who are the dominant manufacturer in China. This opening formed after China became the first nation to ground the Boeing 737 Max following the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302. Since these two fatal accidents in 2019, Boeing has only received 30 new orders in China, and the last time the company carried out a large-scale deal with China was in 2017 – during US President Donald Trump’s most recent visit to Beijing.
China is currently dependent on foreign aircraft manufacturers, with not enough aircraft being produced domestically to be self-reliant. The agreement of this order would allow the nation to replace older jets, expand its fleet, and secure aircraft delivery slots despite the ongoing shortage that means both Airbus and Boeing aircraft are scheduled to be fulfilled in the 2030s.
Similarly, the US will benefit from this sale, with Boeing being the largest manufacturing exporter in the country. The company contributes $97 billion USD each year to the US economy and supports over a million American jobs, holding partnerships with nearly 10,000 businesses across every state. However, Boeing’s sale to China is still at risk due to political tensions and trade hostilities. Notably, the order is subject to the diffusion of such conflict.
Despite uncertainties on the order’s details and the conditions that accompany it going forward, Boeing shares have jumped 3.7% following reports of these negotiations. The deal could become a significant milestone in aviation history as it increases China’s capacity, but it also indicates a growing trust between the US and China that suggests a positive uptick for diplomatic relations and future economic developments.
About Boeing
Headquartered in Virginia, Boeing is a leading aerospace designer and manufacturer that currently serves government and commercial clients in over 150 countries. The company is organised into three business units – Commercial Aeroplanes, Defence, Space & Security, and Global Services.
Boeing manufactures the 737, 767, 777 and 787 aircraft families and the Boeing Business Jet range. More than 10,000 commercial jetliners made by Boeing are currently in use across the world, and the majority of the world’s cargo is also carried aboard Boeing aircraft.
What are your thoughts about the potential deal between Boeing and China? How do you think this could impact the aviation sector? Let us know.
