US President Trump Announces China to Purchase 200 Boeing Planes

US President Donald Trump has announced that China has agreed to purchase 200 Boeing jets, with the potential for the order to rise to as many as 750 planes. The deal includes approximately 200 planes and a promise of up to 750 if China performs well. Trump made the statement on Air Force One on Friday.

The agreement does not have official confirmation from either the Chinese government or Boeing. However, it is reported that the planes will be equipped with GE Aerospace engines. Details about the specific type of jets and delivery schedule are not yet available.

This deal marks a significant development in the aviation market, which was once a key area for US aerospace company Boeing’s long-term growth. The announcement comes amid trade tensions between Beijing and Washington.

Boeing CEO Kelly Ortberg attended a meeting with Trump during his recent trip to Beijing, where he sought to sell products and services to China. It is unclear how many of the 200 planes announced by Trump represent new business for Boeing versus aircraft already in its order backlog.

Industry sources have reported that Boeing was originally negotiating for at least 500 narrowbody jets tied to the Beijing summit, with potential follow-up orders for dozens of widebody jets and up to 200 more. The estimated value of the 200-aircraft order is around $17 billion to $19 billion, assuming 80% of the mix is made up of MAX jets.

The deal would be a significant win for Trump, who has faced challenges in addressing the large US trade deficit. If the order materializes, it would be the largest in aviation history, surpassing IndiGo’s 500-aircraft deal for Airbus narrowbodies.

Source: Al Jazeera