Shares of Boeing were trading roughly 4.4% lower midday on Thursday despite China agreeing to buy 200 of the company's jets, as announced by President Donald Trump following his meeting with China's leader Xi Jinping in Beijing.
In what would be Boeing's first order in the country in nearly a decade, Trump said China agreed to order 200 "big" Boeing jets during their meeting. "Boeing wanted 150, they got 200," Trump added.
The specific aircraft included in the order remain unclear. The weakness in the stock may be tied to the fact that Chinese airlines were expected to order as many as 500 737 Max jets, as well as some widebody aircraft.
Trump and Xi are meeting this week to address issues between the world's largest economies, including sanctions and trade barriers, as well as the war in Iran.
U.S. Treasury Secretary Scott Bessent said earlier Thursday that he expected an announcement about large Chinese orders for Boeing aircraft during Trump's visit to Beijing. Bessent told CNBC that the two sides would also discuss other purchases, including energy and agricultural goods, as well as non-strategic areas in which China could invest in the United States.
For Boeing, the agreement ends years of negotiations with Chinese airlines and concludes its lengthy order drought in the world's second-biggest aviation market.
China hasn't unveiled a major Boeing order since Trump last visited the country in 2017. Beijing typically orders jets from Boeing and rival Airbus SE in bulk and then distributes them among state-owned carriers.
In January 2020, China committed to purchasing $77 billion in U.S.-made goods, including aircraft, but didn't follow through with the pledge after the Covid pandemic reduced air travel.
source https://www.investing.com/news/stock-market-news/boeing-shares-slide-despite-200plane-china-deal-a-first-since-2017-4689515
