Today : Sep 27, 2025
Business
24 September 2025

Boeing Nears Historic 500 Jet Deal With China

A breakthrough aircraft order could reshape global aviation ties as US and Chinese officials edge closer to finalizing a multi-billion-dollar Boeing agreement.

In a development that could reshape the global aviation market and signal a thaw in US-China relations, Chinese airlines are poised to finalize a massive order for up to 500 commercial aircraft from Boeing, the storied American planemaker. The potential deal, which has been described as “huge” by US Ambassador to China David Perdue, is now said to be in its final stages, with negotiations expected to conclude in the coming days or weeks, according to multiple reports from Reuters and Bloomberg.

The announcement comes after a high-profile visit by a delegation of US lawmakers to Beijing—the first such visit since 2019. The group, led by US Democratic Representative Adam Smith, met with top Chinese officials and raised the prospect of renewed Boeing sales, a topic that has been dormant for several years amid trade tensions and regulatory hurdles. At a press conference on September 23, 2025, Smith remarked, “It has been a while since Boeing airplanes were sold here in China,” adding, “We’d like to get that deal done. It’s a good company, good product, hope you get back to selling airplanes in China.”

The significance of the order cannot be overstated. Not only would it be Boeing’s first major commercial sale to China since 2017, but it also represents a possible turning point in the often-fraught relationship between the two economic superpowers. US Ambassador David Perdue underscored the importance of the deal, stating, “This is a huge order that is very important to the president, to Boeing, and to China.” Perdue, who recently visited Boeing’s factory in Tianjin, China, described the negotiations as a “great story of cooperation between the United States and China.”

While the precise details of the agreement—such as aircraft models, quantities for specific airlines, and delivery schedules—remain under wraps, the scale of the deal is clear. If finalized, it would mark China’s first major purchase from Boeing since the China Aviation Supplies Holding Company signed a deal for 300 aircraft in November 2017 during then-President Donald Trump’s state visit. Since then, the relationship has cooled, hampered by the global COVID-19 pandemic, the grounding and protracted recertification of the Boeing 737 MAX, and escalating trade disputes.

China has historically been a crucial market for Boeing, accounting for about 25% of the company’s global aircraft deliveries. The three largest Chinese airlines—Air China, China Southern Airlines, and China Eastern Airlines—dominate the country’s air traffic and are all government-controlled. According to ch-aviation data, these carriers have a combined backlog of 567 aircraft, but only 72 of those are pending deliveries from Boeing. This backlog, coupled with the European rival Airbus steadily gaining ground in the Chinese market, has put added pressure on Boeing to reassert its presence.

Indeed, while Boeing has struggled to secure new Chinese orders in recent years, Airbus has surged ahead. China’s largest carriers recently finalized their own massive order for 500 Airbus aircraft, a deal completed in June 2025 but not yet officially announced. According to Bloomberg News, this order will be divided among the “big three” Chinese airlines—each expected to receive around 100 aircraft—with smaller carriers like Xiamen Airlines and Sichuan Airlines Group also taking sizable shares. The timing of the public announcement for the Airbus deal has been carefully managed, reportedly to avoid overshadowing or interfering with the ongoing Boeing negotiations.

Boeing’s fortunes in China have been further complicated by a series of regulatory and geopolitical setbacks. The grounding of the 737 MAX and its lengthy recertification process left a gap in Boeing’s order book. In 2024, China Development Bank Financial Leasing placed an order for 50 Boeing 737 MAX 8 jets, with deliveries scheduled between 2028 and 2031. But aside from this, the pipeline for new orders has been largely dry, making the potential 500-aircraft deal all the more critical for the company’s future in Asia.

The progress of the Boeing deal has also been closely tied to broader trade negotiations between Washington and Beijing. Over the past several years, both countries have imposed steep tariffs on each other’s goods, with rates soaring as high as 125% in April 2025. However, a temporary truce was reached in September 2025, lowering tariffs to 10% and extending that rate until at least November 10, 2025. Many analysts believe that the easing of these trade barriers has helped pave the way for renewed dialogue and, ultimately, the resumption of large-scale aerospace deals.

The visit by the US congressional delegation, which began on September 21, 2025, is widely seen as a step toward normalizing relations between the two countries. The lawmakers not only discussed commercial aviation but also raised the need for increased military dialogue. As Representative Smith noted, “China has the fastest-growing military and it is dangerous for both countries to lack regular communication about their capabilities.” The broader context of the visit underscores the strategic importance of the Boeing deal, which is being viewed as a bellwether for future cooperation across multiple sectors.

Boeing, founded in 1916 and headquartered in Chicago, has a storied history of innovation in commercial aviation, with product lines that include the Boeing 737, 747, 757, 767, 777, and 787. The company’s recent run of order news has provided a boost to its stock, which climbed on September 23, 2025, amid reports of deals not only with China but also with Uzbekistan Airways and ongoing negotiations with Turkey. According to Investors.com, Boeing secured an agreement with Uzbekistan Airways for up to 22 Boeing 787 Dreamliners, announced on September 22, 2025.

Despite the positive momentum, challenges remain. Boeing’s production lines are already stretched by existing backlogs and ongoing quality control issues, meaning that any new orders from China will likely be fulfilled over an extended period. Still, analysts say that a deal of this magnitude could help Boeing regain crucial market share in China and re-establish itself as a key partner in the country’s ambitious aviation plans.

As the world watches for an official announcement, the potential Boeing deal stands as a symbol of renewed engagement—not just between two corporate giants, but between two of the world’s most powerful nations. Whether this marks the beginning of a lasting partnership or simply a temporary pause in hostilities remains to be seen, but for now, the aviation industry is abuzz with anticipation.