Boeing shares dropped more than 4% after U.S. President Donald Trump announced that China had agreed to purchase 200 aircraft from the American planemaker — a figure that fell far short of earlier expectations surrounding a much larger deal.
Speaking after a meeting with Chinese President Xi Jinping on Thursday, Trump told Fox News that Beijing had agreed to order “200 big ones,” referring to Boeing jets. However, the White House did not provide details about the aircraft models involved or when deliveries could begin.
The announcement disappointed investors who had been anticipating a significantly larger agreement. Earlier reports suggested Chinese and U.S. officials were discussing a potential order of around 500 Boeing aircraft as part of broader trade negotiations between the two countries.
Shortly after Trump’s comments aired, Boeing stock fell 4.1% during trading as markets reacted to the smaller-than-expected number.
At the same time, reports indicate China is also in talks with European aviation giant Airbus over a major aircraft purchase, increasing pressure on Boeing as competition intensifies in one of the world’s most important aviation markets.
According to Reuters, Boeing data shows that Chinese airlines placed an average of 127 aircraft orders annually between 2005 and 2017. Since 2018, however, that number has dropped sharply to around 51 orders per year amid rising geopolitical tensions and an escalating trade dispute between Washington and Beijing.
China remains the world’s second-largest aviation market, and analysts believe demand for commercial aircraft will continue to rise rapidly due to growing passenger traffic and expanding domestic air travel.
Long-term forecasts from both Boeing and Airbus estimate that China could require nearly 9,000 new jetliners by 2045, making the country one of the most critical battlegrounds for global aircraft manufacturers.