A Breakthrough in Sino-Aviation Trade
According to Bloomberg Intelligence‘s Eric Zhu, China is negotiating substantial aircraft orders with both Boeing and Airbus, deals that could collectively reach hundreds of jets. If finalized, these purchases would represent a substantial breakthrough for the two Western manufacturers, while delivering a blow to COMAC’s ambitions to scale as China’s domestic aerospace builder.
Reuters reports that Boeing alone is in talks to sell up to 500 jets to China, the first major transaction since tensions began mounting under the Trump era. Such an outcome is seen as a key component of broader U.S.–China trade negotiations.
Industry Ramifications for Boeing and Airbus
For Boeing, a colossal contract with China is historic, considering the absence of major orders since 2017. Airbus has nonetheless dominated the Chinese commercial fleet in recent years.
Leeham News noted that the deal’s success hinges on geopolitical reconciliation, particularly as COMAC’s C919 and C929 aircraft are still years away from challenging Western models effectively.
COMAC Under Pressure
Bloomberg warned that any new narrowbody orders for Boeing or Airbus will undercut COMAC’s growth trajectory, especially for market share domestically. ACCOMAC’s heavy reliance on foreign components limits its rapid scale-up.
Economic & Political Context
This potential mega-deal arrives as both countries seek to ease escalating trade tensions. Wall Street also attributes this to Boeing’s need to shift down its backlog, particularly pre-2023 aircraft warehoused amid Chinese delivery suspensions.
Market Response and Strategic Timing
The reports triggered stock movement, with Boeing shares rising modestly. Analysts expect confirmation of this sale to provide relief to Boeing’s strained production pipeline while reinforcing Airbus’s position and slowing COMAC’s rise.
What’s Next
- Deal Finalization: Confirmation may align with high-level diplomatic events like APEC.
- COMAC’s Strategy: The Chinese jetmaker may accelerate certification or international partnerships.
Supply Chain Outlook: Demand surges may shape global production timelines of narrowbody jets.
