China signs US$37B deal to buy 300 Boeing planes

China signs US$37B deal to buy 300 Boeing planes

China signs US$37B deal to buy 300 Boeing planes

According to Boeing's latest market outlook, China is expected to need 7,240 new aircraft over the next 20 years, valued at almost 1.1 trillion USA dollars.

The deals included an engine and fix deal for GEnx-1B engines from Juneyao Airlines Co Ltd worth $1.4 billion at list prices, and another $1.1 billion order for 80 Leap-1B engines to power 40 Boeing 737 MAX Aircraft from ICBC Leasing, the leasing arm of state bank Industrial and Commercial Bank of China Ltd, GE said. The agreement was signed in Beijing in the presence of President Donald Trump and Chinese President Xi Jinping, where Boeing's representatives were present as part of the US mission to China.

Boeing received 334 orders that were from unidentified clients as of October 24, with 290 of them for the 737 line of narrow body aircraft.

However, this time it was Boeing who won the $37 billion deal.

China has a component role on every Boeing commercial aircraft model - the 737, 747, 767, 777 and the 787 - and over 9,000 Boeing aircraft fly worldwide with China-built parts and assemblies. Records show that Boeing has in fact sold 155 aircrafts to China last year, and this year already a quarter of their jet planes have been sold to Chinese customers.

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Earlier Thursday, General Electric a maker of aircraft engines said it signed new deals in China that were worth more than $3.5 billion, including one with ICBC Leasing, which is the leasing arm of Industrial and Commercial Bank a state operated bank and Juneyao Airlines.

The deals may provide some comfort to both Airbus and Boeing, as China continues to invest heavily in developing its own aviation industry.

The deal, which was signed in Beijing on November 9, coincided with U.S. president Donald Trump's state visit to China.

It also included an order valued at $1.1 billion for 80 LEAP engines made by CFM International, a joint venture between GE and Safran SA (SAF.PA) of France.

The new order is for 40 Boeing 777s and 787s, and 260 737s.

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