China Wants to Purchase a Large Number of Boeing Aircraft, with an Order of up to 500 Planes
On Thursday, Bloomberg reported that the US aircraft manufacturer Boeing is in discussions and negotiations with the Chinese government over a large order that could include as many as 500 planes. Currently, both sides are still negotiating the specific terms of this complex transaction, including the model of the planes, the quantity, and the delivery schedule. The report stated that relevant Chinese departments have started to inquire about the needs of major airlines.
When AFP contacted Boeing regarding this matter, Boeing said "it would not comment on market rumors." However, Bloomberg also warned that the contract is not guaranteed and may still fail, especially against the backdrop of the China-US trade war. Affected by this news, Boeing's stock rose nearly 3.7% in pre-market trading on the New York stock exchange.
Comments: If Bloomberg's report is accurate, this potential large-scale order would be significant. From a commercial perspective, it would be a "much-needed rain" for Boeing. In recent years, due to quality accidents, the impact of the pandemic, and the China-US trade friction, Boeing has seen a sharp decline in its market share in China, with a severe backlog of orders and frequent fluctuations in its stock price. If it can secure the order for 500 planes, it would greatly improve its financial situation, boost market confidence, drive the development of the upstream and downstream supply chain, and help it regain ground against its long-time rival Airbus.
From the perspective of China's civil aviation industry, with the rapid recovery and development of the domestic civil aviation market, the demand for aircraft continues to rise. Purchasing Boeing aircraft can expand the fleet size, meet the growing demand for passenger travel, enhance the efficiency and service capacity of domestic air transport, and optimize route layouts. At the same time, choosing multiple suppliers can promote market competition, allowing China to have more control over the price and after-sales services in aircraft procurement. Currently, China's local aircraft manufacturer COMAC (Commercial Aircraft Corporation of China) is still unable to fully meet the huge demand of the domestic market.
In the field of international relations and trade, this order sends out complex signals. On one hand, it may be a positive sign of seeking easing and cooperation between China and the US in the economic and trade field. Under the background of the trade war, a large-scale aircraft purchase can help ease bilateral trade tensions and create a favorable atmosphere for dialogue and cooperation in other areas, becoming a "ballast stone" to stabilize Sino-US relations; on the other hand, the negotiation and implementation of the order are full of uncertainties. Trade friction, technical barriers, and geopolitical factors between the US and China may affect the final outcome, and the fluctuation of Boeing's stock price also reflects the market's concerns about the uncertainty of this order.
Original: www.toutiao.com/article/1841126870371335/
Statement: This article represents the views of the author.