China is poised to place a massive order for hundreds of Airbus aircraft, marking a significant development in the ongoing strengthening of diplomatic and economic ties between China and Europe. This anticipated deal, set to take place as European leaders visit Beijing, is seen as a testament to the deepening cooperation between the two regions. With Airbus’s growing market share in China and a final assembly line in Tianjin, this deal could solidify the European manufacturer’s leadership in one of the world’s largest and most influential aviation markets, while also signaling China’s commitment to bolstering its aviation infrastructure in the coming years.

China is expected to place a significant order for hundreds of Airbus SE aircraft as soon as next month, coinciding with a visit from European leaders to Beijing. The visit aims to celebrate the enduring ties between the two countries, according to informed sources.

The European aircraft manufacturer saw an increase of up to 4.1% in trading in Paris. Rolls-Royce Holdings Plc, the maker of engines for Airbus’s widebody planes, gained as much as 0.7% in London.

Airbus has consistently expanded its market share in China, aided by its final assembly line in Tianjin for the widely used A320 family of aircraft. The potential deal being discussed could solidify the European manufacturer’s leadership in one of the world’s most significant aviation markets.

Boeing Co., facing increased challenges in China, is being caught in the crossfire of President Donald Trump’s trade conflict with Beijing. On Wednesday, Trump criticized Chinese President Xi Jinping in a social media post, calling him tough to negotiate with, further fueling skepticism about resolving trade tensions between the two largest global economies.

A landmark deal with Airbus could be Xi’s way of sending a pointed message to Trump about the ongoing trade dispute. French President Emmanuel Macron and Germany’s Chancellor Friedrich Merz are expected to visit Beijing in July to celebrate 50 years of diplomatic relations between China and the European Union. Both France and Germany are major stakeholders in Airbus.

Trade tensions between China and the US have escalated, as Trump seeks to reshape trade policies during his second term. If a resolution is reached, Boeing stands to gain significantly. The US manufacturer is the country’s largest exporter, and a recent jet sale was even incorporated into a US-UK trade agreement in May.

The strong political influence on aircraft purchases was underlined last month when Trump visited the Middle East and played a key role in securing major deals, including a record-breaking order from Qatar Airways for up to 210 Boeing jets, marking one of the largest deals by value for the American manufacturer.

In China, Boeing has faced penalties. In April, Chinese authorities instructed airlines to halt the delivery of Boeing aircraft. The ongoing trade disputes and the issues surrounding the 737 Max model, which have persisted for years, have ultimately tilted the market in favor of Airbus, once a fiercely competitive arena between the two manufacturers.

If the order reaches 500 aircraft, it would rank among the largest in history and the biggest ever for China, surpassing a 2022 deal for around 300 single-aisle Airbus jets valued at approximately $37 billion. In 2023, Air India Ltd. secured an order for 470 Airbus and Boeing planes, while another Indian airline, IndiGo, set a new record by placing an order for 500 narrowbody aircraft with Airbus.

Boeing has not received a significant order from China since 2017, primarily due to ongoing trade disputes and internal issues. In 2019, China made headlines as the first nation to ground the 737 Max following two tragic crashes. Furthermore, trade tensions between China and both the Biden and Trump administrations have driven Chinese airlines to prioritize Airbus over Boeing for their aircraft acquisitions.

China is expected to secure a significant order for hundreds of Airbus aircraft, further strengthening its diplomatic and economic ties with Europe. The deal, set to coincide with a European leaders’ visit to Beijing, highlights China’s commitment to expanding its aviation infrastructure and Airbus’s growing dominance in the region.

In January 2024, Boeing faced a significant quality issue when a door plug detached mid-flight, forcing the company to reduce production and impacting its reputation with the public.

Any potential agreement would likely be facilitated through China’s state-run aircraft procurement body, which generally handles negotiations for the country’s airlines.

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