Boeing China order talks lose momentum ahead of U.S.-China summit

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Boeing China order talks

Highlights

Boeing now aims to finalize its provisional May deal to sell 200 planes to China, not secure a larger new pledge at this week's summit.
The expected 200-aircraft order, down from earlier talks of up to 500, is seen by analysts as a crucial step for Boeing's reentry into the Chinese market.
Airbus continues to strengthen its market share in China, with both Airbus and Boeing forecasting around 9,000 new Chinese jet orders by 2045.

Summit expectations narrow to existing 200-plane plan

As reported by Reuters, people briefed on the matter say Boeing is now focused on finalizing a provisional May deal for China to buy 200 planes, rather than winning a broader new pledge for hundreds more jets at this week's summit. The discussions remain fluid, and the people spoke on condition of anonymity because the talks are private.

The provisional agreement, struck alongside U.S. President Donald Trump's last summit this year with Chinese President Xi Jinping in Beijing, puts Boeing back into contention for Chinese jetliner orders. Before that, the U.S. planemaker has been effectively shut out of the market since 2017, while Airbus continues to build share in one of the world's largest aviation markets.

Earlier in the year, Boeing, Chinese and U.S. officials are discussing a potential deal for as many as 500 aircraft ahead of the spring summit. After the May meeting, Boeing CEO Kelly Ortberg says the smaller-than-expected 200-jet package is an initial tranche, arguing that reopening access to China is the more important achievement.

China market stakes remain high for Boeing

Investors and aviation analysts have expected another sizeable order to emerge from Thursday's summit, but Ortberg last week plays down that prospect. Richard Aboulafia, managing director of AeroDynamic Advisory, says it would already count as a victory if the 200-aircraft order can be preserved.

Analysts also say commercial aircraft purchases are not the main focus of the summit. Scott Kennedy of the Center for Strategic and International Studies says U.S. and Chinese officials are concentrating more on extending a trade truce and discussing AI safeguards, Taiwan weapons sales, and trade arrangements involving soybeans and rare earth minerals.

Airbus has strengthened its position in China in recent years, helped partly by its final assembly line in Tianjin and by comparatively steadier China-Europe ties, according to Shukor Yusof, founder of Endau Analytics in Singapore. Airbus and Boeing market forecasts show China is expected to order about 9,000 new jets by 2045, making the market a critical long-term battleground for both manufacturers.

In our earlier coverage of the Trump–Xi summit in Washington, we noted that the talks were set against an expiring U.S.–China trade truce and a plan to open an AI-focused dialogue on technology risks. We also highlighted why investors were watching closely: any extension of the ceasefire could influence tariffs, supply chains, and cross-border business conditions between the two economies.

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