As China considers a massive purchase of Boeing's 737 Max aircraft, the U.S. planemaker is reemerging as a link in U.S.-China relations. With the deal aligning with U.S. President Donald Trump's push to visit China, some expect it to become a key agenda item in leader-level diplomacy between the two countries.
According to Bloomberg on the 12th (local time), the Chinese government is reviewing the purchase of about 500 Boeing 737 Max jets. Boeing Chief Executive Officer Kelly Ortberg is set to visit China with the U.S. delegation. If finalized, the deal would be one of the largest in Boeing's history.
Ortberg said the trip would be "a meaningful opportunity for Boeing," hinting at the possibility of a major deal. Ortberg said, "I can't say the exact number of aircraft, but it's a very big number."
Bloomberg said that if the deal goes through, it could give Trump a card to tout achievements in trade talks with China. That is because Boeing is more than just an airplane manufacturer; it symbolizes the economic relationship between the two countries.
After former U.S. President Richard Nixon's 1972 visit to China, China purchased 10 Boeing 707 jets, marking the start of bilateral aviation cooperation. Since then, China has grown into the world's second-largest aviation market after the United States. Boeing, too, has expanded its influence in the global aircraft market on the back of the Chinese market.
But in recent years, Boeing has been effectively pushed out of the Chinese market. After two 737 Max crashes, China was the first to ground the model, and as U.S.-China tensions intensified, new orders plunged. Compounded by production disruptions and quality controversies, Boeing has failed to clinch a major deal in China for about a decade.
Analysts also said the deal could help ease aircraft shortages for Chinese airlines. Since COVID-19, Chinese carriers have needed new aircraft as international routes recover and travel demand rises. But aircraft shortages persist due to global supply chain issues and production delays. With rival Airbus also backlogged with orders into the 2030s, resuming purchases from Boeing could be a practical alternative for China.
Bloomberg also said the talks could affect the global competition to develop new aircraft. Boeing is reviewing a strategy to develop a next-generation jet to replace the existing 737 Max and plans to begin selecting core technologies as early as next year. Airbus is also pushing to develop a successor to the A320neo, setting the stage for full-fledged competition over next-generation aircraft between the two companies.
The new aircraft Boeing is considering is said to be larger than the current 737 and closer in size to the discontinued 757. The fuselage would retain today's cylindrical structure and turbofan engines, but the wings are expected to be much longer and thinner than those on existing commercial airplanes. In particular, there is talk that folding wingtips, like those on the 777X, could be applied.