U.S. President Donald Trump announced Friday that China has agreed to purchase 200 Boeing aircraft in a major aviation deal that could eventually expand to as many as 750 planes.
Speaking to reporters during his visit to Beijing, Trump said the agreement includes “approximately 200 planes and a promise of up to 750 if they do a good job,” adding that the aircraft would be equipped with GE Aerospace engines.
Specific details about the deal, including aircraft models and delivery schedules, were not immediately released.
If finalized, the agreement would represent Boeing’s first major aircraft sale to China in nearly a decade, marking a significant breakthrough after years of strained trade relations between Washington and Beijing largely shut the American manufacturer out of one of the world’s biggest aviation markets.
Boeing later confirmed the arrangement involved an “initial commitment” for 200 aircraft and suggested additional commitments could follow in future phases. The company noted that such commitments are preliminary agreements that have not yet been added to Boeing’s official order backlog.
The announcement comes as Boeing attempts to regain ground in China after European rival Airbus expanded its dominance in the region in recent years.
Industry analysts estimate the initial 200-plane order could be worth between $17 billion and $19 billion, depending on the mix of aircraft involved. Aviation advisory firm IBA said the value could climb to approximately $25 billion if a larger share of the order includes widebody aircraft.
The agreement would also provide a major boost to China’s rapidly growing aviation sector, where domestic aircraft production through COMAC’s C919 program has struggled to meet ambitious output goals.
Boeing CEO Kelly Ortberg and GE Aerospace CEO Larry Culp were among several American business leaders accompanying Trump during the Beijing summit in hopes of securing commercial deals and easing trade tensions.
Despite the significance of the announcement, investors reacted cautiously. Boeing shares fell nearly four percent after Trump first disclosed the deal, as analysts had reportedly expected a much larger initial order. Shares continued to decline Friday, while GE Aerospace also saw losses.
Industry sources previously indicated Boeing had been negotiating for at least 500 narrowbody aircraft linked to the summit, along with additional widebody jet orders that could be announced later.
Trump also revealed that Chinese President Xi Jinping is expected to visit Washington in September, raising expectations that further aviation agreements could be unveiled during that trip.
However, some aviation experts say concerns over after-sales support and potential U.S. export restrictions continue to affect Chinese purchasing decisions.
Analyst Li Hanming said uncertainty surrounding access to aircraft parts and maintenance support has created hesitation among Chinese buyers, especially after previous threats of export controls from the United States.
The Boeing-China agreement is viewed as a major political and economic victory for Trump as his administration continues efforts to reduce the U.S. trade deficit and strengthen commercial ties with Beijing.