Boeing Set to Benefit Greatly from Trump-Xi Meeting

Jakarta, CNBC Indonesia - The meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing is not only important for the relationship between the world’s two largest economies. The meeting also brings good news for the US aircraft manufacturer, Boeing.

Boeing is likely to receive a large order from China. Trump said that China has agreed to buy 200 Boeing aircraft. This number could potentially increase to 750 units.

The aircraft will also use engines from GE Aerospace.

This news is a breath of fresh air after Boeing’s business in China has been under pressure in recent years. China is one of the important markets for Boeing, but trade tensions, geopolitical issues, and competition with Airbus have hampered orders from the Bamboo Curtain country.

If realized, the purchase of 200 aircraft could be Boeing’s first major order from China in almost a decade. The value of this agreement is estimated to be in the range of US$17 billion to US$19 billion. The value could even approach US$25 billion if China buys more wide-body aircraft.

This order will also add to Boeing’s list of sales and open up opportunities for the company to strengthen its position in the Chinese market. So far, the Chinese aviation market has been a competitive arena between Boeing and Airbus.

The need for new aircraft in China is also still high. The number of passengers continues to increase, while the production of domestically manufactured aircraft such as the COMAC C919 is not yet large enough to meet all market needs.

The signal that Boeing will also benefit has been seen before the Trump-Xi meeting. Boeing CEO Kelly Ortberg was part of Trump’s business delegation to China. After the meeting, Ortberg and GE Aerospace CEO Larry Culp also met with officials from China’s National Development and Reform Commission.

However, the market is not yet fully satisfied. Boeing shares fell slightly after the news of the purchase of 200 aircraft emerged.

One of the reasons is that market participants had previously hoped for a larger number of orders. Before the announcement, there were expectations that China could buy around 500 aircraft.

Aircraft Deliveries Increase, Boeing Returns to Profit

Boeing’s recovery has begun to be seen from its 2025 performance. Throughout last year, the company successfully delivered 600 commercial aircraft to global customers. This is the highest achievement since 2018.

This figure is much better than in 2024, when Boeing only delivered 348 aircraft. The increase in deliveries shows that production activity has begun to run more stably after previously being disrupted by production problems, regulatory oversight, and supply chains.

Aircraft deliveries are an important indicator because major revenue usually only really comes in when the aircraft is delivered to customers. The more aircraft delivered, the greater the opportunity for the company to improve its cash flow and financial performance.

Recovery is also visible in the financial statements. Boeing recorded full-year revenue of US$89.5 billion in 2025, up 34% from 2024. The company also managed to return to profit after previously recording a large loss.

In 2024, Boeing recorded a net loss of US$11.88 billion. However, in 2025, the company managed to book a net profit of US$1.89 billion. This is a sign that the pressure that has hit Boeing in recent years is starting to ease.

The total Boeing backlog also rose to a record US$682 billion, mainly supported by 1,173 net orders for commercial aircraft throughout 2025. The backlog is a list of orders that have been received, but not all of which have been delivered to customers.

Additional orders from China could strengthen Boeing’s recovery momentum. This is because China is one of the largest aviation markets in the world.

With a large population, extensive economic activity, and increasing demand for air transportation, Chinese airlines need many new aircraft to open routes, increase flight frequencies, and replace old fleets.

Boeing Often Part of US Trade Agreements

The inclusion of Boeing in the results of the Trump-Xi meeting also shows a similarity in the way the United States conducts trade diplomacy. Washington has several times included the purchase of Boeing aircraft in economic agreements with other countries.

Previously, Indonesia also included a commitment to purchase 50 Boeing aircraft in a trade agreement with the US. In the agreement, there is a package of purchases from Indonesia to the US, including the procurement of commercial aircraft as well as related aviation goods and services worth approximately US$13.5 billion, including from Boeing.

A similar pattern can also be seen in several other Asian countries. Vietnam has an agreement to buy 50 Boeing aircraft with a value of more than US$8 billion.

Malaysia included plans to purchase 30 Boeing aircraft, with an option to purchase an additional 30 units. Meanwhile, Uzbekistan has a contract to purchase up to 22 Boeing 787 Dreamliner aircraft with a value of US$8.5 billion.

This means that Boeing is not just an aircraft manufacturer. In many US trade agreements, this company is also part of Washington’s strategy to encourage exports of high-value goods.

The Aircraft Industry is Important for the US Economy and Jobs

Aircraft are one of the United States’ strategic export products. The value is large, the technology is high, and the impact is widespread on domestic industries.

In 2024, the value of US aerospace and defense sector exports reached US$138.6 billion. This sector also recorded a trade surplus of US$73.9 billion. This means that the US sells aerospace products abroad much more than similar products it imports from other countries.

The impact is also felt on employment. The US aircraft manufacturing industry employed approximately 254,300 people in 2024.

If calculated more broadly to the aerospace industry, there are 545,400 direct jobs and a total of about 1.6 million jobs supported by the supply chain and household consumption.