Call it high-altitude diplomacy, but a potential deal for 500 Boeing aircraft may be pivotal in easing tensions between the United States and China.
Bloomberg reported on Thursday that Boeing is nearing an agreement to sell up to 500 planes to China, citing sources familiar with the discussions.
Since China purchased 300 single-aisle and twin-aisle jets worth US$37 billion during President Donald Trump’s 2017 visit, Boeing has delivered just 30 aircraft to the mainland, while Airbus has continued to dominate the market.
China was among the first to ground its entire 737 Max fleet following two fatal crashes, allowing Airbus to secure a leading share of sales and deliveries. Recent Cirium data indicates Airbus has 2,326 aircraft in service or storage, compared to Boeing’s 1,874.
According to Bloomberg, the two sides “are still negotiating the terms of the complex aircraft sale, including jet models, quantities, and delivery schedules,” as per one source.
Sources added that Chinese officials have begun consulting domestic airlines about their Boeing aircraft needs, and the prospective deal could mirror a prior Airbus order for up to 500 jets by China’s central planner.
While the potential sale has been in the works for years, sources cautioned that its success depends on easing the trade tensions originating in Trump’s first term and warned that the deal could still collapse.
Boeing orders have played a significant role in US diplomatic efforts since Trump returned to the White House, and this anticipated deal is expected to form the cornerstone of a trade agreement benefiting both Trump and China’s President Xi Jinping, amid longstanding and sometimes fraught negotiations.
