Trump says China will buy 200 Boeing jets, much lower than expected | Donald Trump News

China has agreed to buy 200 Boeing airplanes, which could increase its capacity to 750, US President Donald Trump said, adding that the planes will be equipped with GE Aerospace engines.

The deal “includes about 200 planes and the promise of 750 if they do a good job”, Trump told reporters on Air Force One on Friday. Details about the deal, such as the type of jet and when the order will be delivered, were not immediately available.

Recommended Articles

list of 4 itemsend of series

Neither the Chinese government nor Boeing have made statements confirming the purchase agreement, which will be the most successful in a market that has been central to the long-term growth of the US aerospace company and where the US aircraft manufacturer has been locked out, amid trade tensions between Beijing and Washington. Aircraft manufacturers often reveal major sales when they are made.

Boeing CEO Kelly Ortberg was among a large group of US officials who joined Trump during the president’s trip to Beijing, seeking to sell goods and services to China.

It was unclear how many of the 200 planes Trump announced represented Boeing’s new business versus existing planes.

People familiar with China’s procurement processes said Beijing has kept new rules and announced revisions while unveiling deals linked to diplomatic visits by US and European leaders.

For China, such a large system would allow it to continue to grow its aircraft market, even if the production of its small-body COMAC C919 fails to meet its demands.

It would also help Boeing narrow the gap with Airbus, which has made significant progress in China in recent years.

An estimate from aviation technology and consulting firm IBA put the value of the 200-plane order at about $17bn to $19bn, assuming 80 per cent of the mix is ​​MAX jets.

“This figure, however, could increase to $25bn if a large part (about 40 percent) of the total plan is announced for more airlines,” said Samuel Kenekueyero of IBA.

A partnership can be a Trump’s most important victorywhose aggressive tariffs and other trade policies have so far failed to significantly affect the US trade surplus.

The order for more than 500 jets, if successful, would be the largest in the airline’s history, surpassing IndiGo’s 500 Airbus narrowbodies, although China’s purchase is split between its three major state-owned carriers.

The minimum size expected

Shares of the US plane maker fell nearly 4 percent on Thursday after Trump told Fox News Channel China had agreed to buy 200 jets, less than analysts had expected. They were down about 2.6 percent on Friday, while GE Aerospace shares fell 2 percent.

Industry sources say Boeing was initially talking about at least 500 planes built at the Beijing meeting, with more jets and possibly 200 to follow later.

Trump said Xi would return to Washington in September, meaning it could be a key location for a potential airstrike.

However, concerns about after-sales service have been weighing on purchases, said Li Hanming, an independent analyst of China’s aviation industry.

“The reason why China is not buying is simple: nobody wants to buy a product without guaranteeing repair and after-sales support.” Last May, the United States was still threatening export restrictions.

Wendy Cutler, vice president, Asia Society Policy Institute, and deputy US trade representative, told Al Jazeera in an email, “What we expected and what we haven’t seen so far is not just China’s confirmation of aircraft purchases, but also large Chinese purchases, especially in the agriculture and energy sectors.”

Both sides have yet to agree to extend the trade agreement, which expires in five months, he said.

“All these issues seem to be working, so we may see some announcements in the coming days. If additional economic announcements are not forthcoming, it is safe to say that the meeting was very heavy on atmosphere, but light on substance,” said Cutler.