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Boeing confirmed it ended nearly a decade-long sales drought in China with an initial commitment for 200 aircraft, in a statement late Friday. But investors remain spooked by the confusion clouding the mega-deal, starting with the way it was disclosed.
The planemaker’s shares declined more than 9.4% during trading on Thursday and Friday, even though U.S. President Donald Trump clarified for reporters that the total sales could reach as many as 750 Boeing aircraft. Engines for the exported aircraft will be supplied by GE Aerospace, another American industrial titan.
What’s not clear: the make and model of the aircraft, the timing of the deliveries and whether Boeing and GE have firm orders under contract, or less-binding agreements. That’s significant because China didn’t follow through on its aircraft commitments in the so-called “Phase One” trade agreement unveiled at the White House in January 2020, underscoring how aircraft sales are deeply intertwined with the broader great power competition between the U.S. and China.
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