Boeing’s 200-jet China deal hinges on Trump-Xi talks

The fate of Boeing's ↗ 0.52% long-awaited 200-jet sale to China remains uncertain ahead of President Xi Jinping's state visit to Washington on September 24, with industry insiders warning the deal's final terms will be shaped by the broader diplomatic bargaining between Xi and President Donald Trump.scmp+1

A Deal Still in Limbo

Beijing agreed to purchase 200 Boeing aircraft during Trump's visit to China in May, with Trump telling reporters aboard Air Force One that the order could eventually grow to as many as 750 planes. Boeing confirmed an "initial commitment" for 200 aircraft, and China's Commerce Ministry said the U.S. would provide supply guarantees for aircraft engine parts and components.bbc+3

But four months later, the deal has yet to materialize. Negotiations have been bogged down by Beijing's demands for long-term guarantees on the supply of engine parts, according to Politico, which reported in July that the agreement was at risk of "falling apart". Key details — especially the time frame for purchases — remain unresolved, and the outcome is now expected to depend on the Xi-Trump meeting at the White House, according to the South China Morning Post.politico+1

"It's all about the three Ws: whether, when and what," a retired aviation executive who previously oversaw fleet management at one of China's largest state-owned airlines told the SCMP.scmp

Stakes for Boeing and the Market

Boeing shares have been under pressure in recent weeks amid uncertainty over the deal. The company has not secured a major Chinese airline order in nearly a decade, and the 200-plane commitment would represent a major breakthrough in a market increasingly dominated by Airbus. Reuters reported in September that Xi is expected to travel with a large business delegation, raising expectations that commercial deals could feature in the visit.reuters+1

Boeing CEO Kelly Ortberg has described the 200-jet order as an "initial tranche" of what could become a larger agreement, and in June, China Southern Airlines signed a separate $3.62 billion freighter order with Boeing — a signal of warming commercial ties.reuters+1

Bangladesh Opens the Door

Separately, Bangladesh left the door open for an additional Boeing deal during Prime Minister Tarique Rahman's visit to New York for the 81st United Nations General Assembly. Foreign Secretary Asad Alam Siam told reporters on September 20 that the prime minister's program "is a living programme, so all options remain open," though no additional agreement has been officially announced.tbsnews

Bangladesh signed a $3.7 billion deal in April for 14 Boeing aircraft, and another 11 planes are reportedly under consideration, which would bring the country's total Boeing acquisition to 25 aircraft.tbsnews