[Source/Observation Network by Ruan Jiaqi]

According to a report by Bloomberg News on April 4, French President Emmanuel Macron, German Chancellor Merkel, and other European leaders may visit China in July to celebrate the 50th anniversary of the establishment of diplomatic relations between China and the EU. As the two major shareholder countries of European aircraft manufacturer Airbus, the visits of French and German leaders are expected to result in a highly anticipated purchase agreement with the Chinese side.

The report cited sources as saying that Airbus is likely to sign an order for hundreds of aircraft with the Chinese side next month to commemorate long-term bilateral cooperation between China and Europe.

According to the source, the scale of this potential order could reach around 300 aircraft, covering both narrow-body and wide-body models. Another source said that the number of orders might range from 200 to 500 aircraft, with wide-body aircraft accounting for a larger proportion. In addition, Airbus's smallest twin-aisle model, the A330neo, is also expected to secure some orders.

The report stated that if the final order reaches 500 aircraft, it will be one of the largest orders in Airbus' history and will break the procurement record of China's civil aviation industry. The amount will exceed the procurement agreement signed by the three major Chinese airlines with Airbus in 2022 for 292 A320neo series single-aisle aircraft, with a transaction amount reaching $37.2 billion.

However, the source emphasized that current negotiations still have uncertainties, and there is a possibility of negotiation failure or a longer time to reach an agreement.

In China's airline fleet, Airbus has taken the lead over Boeing. According to a Bloomberg report, this deal will provide China with an opportunity to "send a message" to U.S. President Donald Trump regarding trade issues.

Since 2017, affected by trade friction and Boeing's own crisis, the American aircraft manufacturer Boeing has not received any significant orders from China. In 2018, nearly 1/4 of Boeing's production was sold to China, but after two fatal crashes in 2019, China became the first country to ground the 737 MAX aircraft. Since then, escalating trade disputes during the Trump and Biden administrations have further prompted China to turn to Airbus.

Earlier reports from Reference News cited foreign media as stating that Boeing CEO Kelly Ortberg confirmed in April that due to the Sino-U.S. trade war, China had stopped accepting new aircraft. World's largest aircraft leasing company AerCap predicted that if the United States continues to impose tariffs, Boeing's market share will significantly shrink.

According to CNBC, on May 29 local time, Ortberg announced at a strategic decision-making meeting that benefiting from the policy window of the "deferred tariff" period between China and the United States, Boeing will resume the delivery process of aircraft to China. The first batch of orders is expected to be delivered next month (June).

Talking about the frequently changing trade policies, he said at the time, "Personally, I believe that these policies will not... be permanent in the long run."

According to a Financial Times report on June 1, Ortberg also stated in an interview that he is working with the Trump administration to address the "uncertain" period and ensure that the company does not become an "unintended casualty" of the Sino-U.S. trade war. He also suggested that various countries increase their purchases of Boeing aircraft to reduce trade deficits with the United States.

In the bilateral trade agreement reached on May 8 between the UK and the US, Boeing received substantial support. Commerce Secretary Lighthizer revealed at the White House that the UK will purchase $10 billion worth of Boeing aircraft. Meanwhile, the US will lift tariffs on Rolls-Royce-made aircraft engines and aviation parts manufactured in the UK.

At the same time, Boeing has also become one of the bargaining chips for the EU to counter the US. Brussels stated that if sufficient progress is not made in negotiations with the US before July 14, it will initiate retaliation based on a potential tariff list covering €95 billion worth of goods, including Boeing's aircraft.

Airbus also expressed support for this. In early May, its CEO Guillaume Faury stated at an event in Paris that if negotiations fail to cancel the tariffs imposed by the US on the aerospace industry, Europe should take "reciprocal measures" against US aircraft manufacturers.

"Airbus is also a participant in the US civil aviation industry, and our products imported into the US will also be punished," Faury said, adding that tariffs bring uncertainty to the industry and hinder investment.

This article is an exclusive contribution from the Observation Network and cannot be reprinted without permission.

Original Source: https://www.toutiao.com/article/7512002085848711732/

Disclaimer: This article represents the author's personal views. Please express your attitude by clicking the "Like/Dislike" buttons below.