China's 200-Jet Boeing Deal Sends Urgent Signal To Investors

China's return to Boeing could mark one of the more important aviation trade resets in years, after President Donald Trump said Beijing agreed to buy 200 commercial jets from the US planemaker. In a Fox News interview Thursday, Trump said China agreed to order 200 big Boeing jets, adding that Boeing wanted 150, they got 200. The agreement would represent China's first purchase of US-made commercial aircraft in nearly a decade, though the exact aircraft included in the order remain unclear. Chinese airlines had previously been expected to order as many as 500 737 Max jets along with some widebody aircraft, leaving investors to weigh whether the announced 200-plane figure could be an initial step rather than the full scope of demand.The market reaction was not straightforward. Boeing shares fell 4.8% to $229.13 as of 12:11 p.m. New York time, putting them on pace for their biggest decline in about seven months, even as the announcement pointed to a possible reopening of China's market for the company. For Boeing, the agreement would close a long order drought in the world's second-largest aviation market and potentially support the financial turnaround being led by Chief Executive Officer Kelly Ortberg, who is part of Trump's delegation. It could also give Chinese airlines more access to US-built aircraft at a time when global demand for new jetliners is running ahead of manufacturers' ability to produce them.The broader context remains important for investors. China has not announced a major Boeing order since Trump's 2017 visit, and a January 2020 commitment to buy $77 billion in US-made goods, including aircraft, did not materialize after Covid weakened air travel. Boeing later lost its market lead in China to Airbus as trade tensions increased and the 737 Max faced an extended grounding, with China the first country to ground the model after two fatal crashes and not allowing it to fly again until 2023. Since July 2022, major Chinese airlines have ordered or committed to about 700 Airbus jets, including a 137-plane purchase by China Southern Airlines and one of its subsidiaries announced in April, while China's C919 has won more than 1,000 orders but continues to face a slow production and delivery ramp.