Boeing shares fell 4 percent after United States (US) President Donald Trump revealed that China agreed to buy 200 jets, an amount much less than expected. The type of aircraft and when they will be delivered is still unclear.
Earlier reports suggested that talks were underway between Chinese and US officials over a potential sale of around 500 Boeing jets.
After the meeting between President Xi and Trump on Thursday, the US president told Fox News: “One thing he agreed to today, he will order 200 jets … 200 big ones.”
Shortly after the announcement, the aircraft manufacturer’s shares fell 4.1 percent in aftermarket trading.
Reports suggest China is negotiating a major deal to buy jets from European aircraft maker Airbus.
According to Reuters, data from Boeing reveals that the Chinese placed an average of 127 orders each year from 2005 to 2017; But following the escalating geopolitical tensions and trade war between the two largest economies in the world, the Chinese order has been reduced to an average of 51 per year since 2018.
China is the world’s second-largest aviation market, and Boeing’s competitors have been scrambling to secure deals.
Given the population and growing demand for air travel in China, it is necessary to buy at least 1,000 new jets this year, according to some analysts.
According to market forecasts from both Boeing and Airbus, the country will require at least 9,000 new jets by 2045.
