Boeing Company (BA.US) will "thaw" in China! CEO says: 200 aircraft orders will be finalized this year, with even larger deals to follow.

With the end of Trump's visit to China, the economic and trade outcomes agreed upon in the summit diplomacy between the two countries are gradually being implemented, including China's plan to purchase 200 Boeing Company (BA.US) aircraft. In response to this, Boeing Company CEO Kelly Ortberg stated that the order for these 200 aircraft will be officially finalized later this year, and this is just the "first batch order" of a potentially larger deal. The Chinese Ministry of Commerce stated last week that in accordance with the important consensus reached by the Chinese and American leaders, Chinese airlines will introduce 200 Boeing Company aircraft based on their own aviation development needs and commercial principles. At the same time, the US side will provide sufficient engine and parts supply guarantee to China. For the US side, this is considered a major breakthrough. Since 2018, due to the impact of the first round of trade war between China and the US and the Boeing Company scandal, the addition of new orders for Boeing Company in the Chinese market has basically been close to zero. Although China has gradually started accepting Boeing Company aircraft since 2024, the main focus remains on completing the existing orders prior to 2018, and new orders are few and far between, with no major orders at all. Therefore, this order of 200 Boeing Company aircraft is an important breakthrough for Trump. Although the number of 200 aircraft is significantly reduced from the initial rumor of 500 aircraft, Ortberg stated at a congressional meeting on Wednesday that his trip to China with Trump was "highly successful," and after nearly a decade of frozen orders due to trade tensions between Washington and Beijing, he has reopened the doors of the Chinese market for Boeing Company's narrow-body aircraft. Ortberg said, "This is a good start. I am very confident that with the market remaining open, this is just the first batch of aircraft orders, and there will be more in the future." Ortberg stated that once the Chinese side commits to purchasing a batch of narrow-body aircraft, they will then allocate them to various airlines, and Boeing Company will then negotiate and sign formal orders with each airline. He said, "The commitment for the initial 200 aircraft will be converted into formal orders later this year. I never planned to go to China and come back with a big order for 500 aircraft." Furthermore, sources revealed that China plans to purchase several hundred more Boeing Company aircraft, but they will not announce all orders at once, instead choosing to release procurement commitments in stages. The source stated that China may further commit to purchasing 300 to 500 aircraft in the future, potentially reaching a total procurement scale of up to 700 aircraft. However, the precondition is that Boeing Company must fulfill its obligation to provide critical spare parts for Chinese airlines' active aircraft.