China signs $37 billion deal to buy 300 Boeing planes
In this article (5)
China signed an agreement Thursday to buy 300 airplanes from U.S. aerospace giant Boeing valued over $37 billion, as part of a multi-billion dollar raft of deals announced during President Donald Trump’s visit to Beijing.
The agreement for China Aviation Suppliers Holding Co (CASC) to buy the single-aisle and twin-aisle aircraft was among the more than $250 billion in agreements announced at a ceremony attended by Trump and Chinese leader Xi Jinping.
A Boeing statement said the agreement includes “orders and commitments” to buy the aircraft, but it did not give a further breakdown.
In September 2015, Boeing had already received an order from CASC for 300 aircraft valued at a record $38 billion at list prices.
Boeing and European rival Airbus are competing heavily in China, the world’s second aircraft market, with the U.S. company forecasting that the Asian giant needs over 7,200 commercial aircraft in the next 20 years.
China, meanwhile, has developed its own medium-haul C919 in a bid to challenge the Airbus-Boeing duopoly.
Questions & Answers
Q.Which Chinese company is buying the Boeing planes?
Which Chinese company is buying the Boeing planes?
China Aviation Suppliers Holding Co (CASC) is the company responsible for purchasing the aircraft from Boeing as part of the new agreement.
Q.Are these planes a new order, or does the deal include previously announced purchases?
Are these planes a new order, or does the deal include previously announced purchases?
The agreement encompasses both new orders and commitments. A previous order for 300 aircraft was placed by CASC in September 2015.
Q.What types of aircraft are included in this purchase agreement?
What types of aircraft are included in this purchase agreement?
The deal includes both single-aisle and twin-aisle aircraft, according to the agreement signed between China and Boeing.
Q.What is the estimated future demand for commercial aircraft in China?
What is the estimated future demand for commercial aircraft in China?
Boeing forecasts that China, as the world's second-largest aircraft market, will require over 7,200 commercial aircraft within the next two decades.
Reader pulse
Will China reduce reliance on Boeing/Airbus soon?
18,441 votes so far