China made it official on Wednesday: it's buying 200 aircraft from Boeing Co (BA), following up on the handshake deal President Donald Trump and Chinese President Xi Jinping struck last week. The confirmation came from China's Ministry of Commerce and was echoed by state-run news agency Xinhua.
This is the first major order Boeing has landed from the world's second-largest aviation market in over a decade — a big deal for a company that's been navigating turbulence on multiple fronts. The statement also said Washington has committed to providing a sufficient supply of engines and spare parts for the aircraft, which is a key reassurance for Beijing.
Trump had earlier suggested the order could eventually swell to 750 units, and a Boeing spokesperson told MarketDash that the company expects "further commitments." Boeing CEO Kelly Ortberg was part of the U.S. business delegation that accompanied Trump to China, alongside Tesla's Elon Musk, NVIDIA's Jensen Huang, and other industry leaders.
Tariff Relief on the Table
On the trade front, Beijing said both governments will pursue matching reductions of tariffs on goods valued at $30 billion on each side. That's a meaningful step toward unwinding some of the tit-for-tat trade war that has weighed on global markets. The commerce ministry also said both sides will work through concerns tied to export controls.
China reiterated that it implements controls on exports of critical minerals, including rare earths, in accordance with laws and regulations, and that it reviews export requests that are compliant with the laws and intended for civilian use. That's a signal that Beijing isn't about to completely drop its leverage, but it's open to case-by-case approvals.
Boeing's Stock: A Strange Flight Path
Despite the good news, Boeing shares were down 2.22% in premarket trading Wednesday at $215.71, following a 2.54% decline at Tuesday's close. Over the past five days, the stock has dropped close to 10%. So the market isn't exactly throwing a party — perhaps because the deal was already priced in, or because investors are focused on Boeing's longer-term challenges.
MarketDash data shows Boeing offers satisfactory momentum, but fails to provide a favorable price trend in the long term. That's a polite way of saying the stock has been a bumpy ride, and this China order, while significant, doesn't instantly fix the company's broader issues.
