An agreement to buy 200 Boeing aeroplanes, along with engines and spare parts, was confirmed by China's Commerce Ministry on Wednesday. Subsequently, the US-listed company's shares edged higher in pre-market hours, trading 0.49% higher at $216.06 per share.
According to a Commerce Ministry official, aviation is essential to strengthening ties between the United States and China. China's aviation industry will launch 200 Boeing aircraft based on commercial principles and its own demands for air transport development, in line with the significant agreement achieved by the Chinese and US leaders, the official said in a statement, as reported by CNBC.
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Last week, US President Donald Trump told Fox News that China would buy 200 Boeing aircraft. It was the first significant Chinese order for the aircraft since 2017, despite the number being less than half of what analysts had predicted.
Notably, Boeing shares have shown little movement in the past year, rising only 3.53%. On a year-to-date basis, the stock is down 3.5%.
A Washington state trade official told CNBC on Tuesday that Boeing, which produces the majority of its commercial aircraft in Seattle, may eventually earn more orders from Chinese carriers.
"I think it's only logical that there would be more orders in the future because Boeing has a lot of demand and a little bit of a waitlist," stated Andrea Chartock, assistant director of the Washington State Department of Commerce's Office of Economic Development and Competitiveness.
On Tuesday, Chartock told CNBC, "We are very happy to hear about this announcement." She pointed out that the state has "a whole industry around Boeing," with suppliers ranging from satellites to space.
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On Sunday, China's civil aviation authority announced that it had met with Kelly Orthberg, the CEO of Boeing, a few days prior. The executive travelled to China with Trump's group.
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