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Boeing today signed a deal to sell 300 planes worth $37 billion (£28.2 billion) at list prices to state-run China Aviation Supplies Holding Company - just one of several agreements announced during U.S. President Donald Trump's state visit to Beijing.
The deal comes just as China's first home-grown passenger jet, the C919, is about to start a new phase of in-flight testing.
The new order is for 40 Boeing 777s and 787s, and 260 737s. The agreement was signed by Kevin McAllister, Boeing Commercial Airplanes president and CEO, in the presence of Trump and Chinese President Xi Jinping.
"China is a valued customer and key partner, and we're proud that Boeing airplanes will be a part of its fleet growth for years to come," said McAllister. "Boeing and China have a strong history of working together based on great mutual respect, and these orders build on that foundation."
China Aviation Supplies leases planes to Chinese airlines. However,
Reuters reports that it is not clear how many planes will be new business, as the deal may also cover 334 orders from undisclosed customers that purchased aircraft during this year. Of these, 290 were for the 737.
It is not the first time this year the Chinese company is buying foreign passenger jets. In July, China Aviation Supplies announced it would buy 140 aircraft from Airbus in a deal worth $23 billion. In October, it said it would purchase 39 wide-body jets from Singapore Airlines.
The deals may provide some comfort to both Airbus and Boeing, as China continues to invest heavily in developing its own aviation industry. In May this year, the first Chinese-built passenger jet, the twin-engine C919, made its maiden flight from here at Shanghai’s Pudong international airport.
The single-aisle jet is designed to compete with the Boeing 737 and the Airbus A320. Back then, Chinese aviation industry expert Gu Bin was quoted as saying that the aircraft would “rip a hole” in the market dominance of Airbus and Boeing.
The C919 is due to make its first long-distance test flight this Friday, according to Commercial Aircraft Corporation of China (COMAC), the Shanghai-based manufacturer of the jet.
COMAC says that it has received orders for 730 C919 planes from 27 domestic and international clients.
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