Investors reacted cautiously after US President Donald Trump announced that China had agreed to purchase 200 Boeing aircraft followinghigh-level talks with Chinese President Xi Jinpingin Beijing, a figure significantly lower than earlier market expectations of a 500-plane deal.
The announcement, made duringTrump's visit to China, was framed by the President as a major breakthrough in US-China trade relations, particularly for American exports and the aerospace sector.
Trump toldFox Newsthat China had committed to ordering 200 Boeing jets, describing it as '200 big ones' and suggesting it represented a meaningful step in rebuilding commercial ties between the two economies.
However, the deal immediately raised questions in financial markets because its size fell well short of earlier projections.
Prior to the summit, analysts and industry sources had anticipated a substantially larger agreement, with expectations ranging closer to 500 aircraft.
The discrepancy between speculation and the final figure triggered a negative reaction on Wall Street, with Boeing shares dropping more than 4 per cent during trading following Trump's remarks.
Reutersreported that while details of the agreement remain limited, including delivery timelines and aircraft types, the deal is being viewed as the first major Chinese purchase of US-made commercial jets in nearly a decade.
The lack of clarity has further contributed to investor uncertainty, particularly given Boeing's recent efforts to stabilise its international order pipeline.
Speaking during the visit, Trump characterised the agreement as part of a broader effort to rebalance trade flows between the United States and China. He suggested that additional commercial and agricultural purchases could follow as part of ongoing negotiations.
US officials travelling with the delegation, including Treasury Secretary Scott Bessent, had earlier signalled expectations of a significant Boeing announcement, reinforcing market anticipation ahead of the summit.
Source: International Business Times UK
