China’s $50B Airbus Power Play Deals Crushing Blow to Boeing in Tariff War Standoff U.S. Aviation

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

China is preparing to make a massive purchase of airplanes from Airbus, one of Europe’s biggest aircraft manufacturers. The potential order could include up to 500 aircraft, which would make it one of the largest plane deals ever in China’s history. The talks are happening as European leaders get ready to visit Beijing in July to celebrate 50 years of diplomatic ties between China and the European Union.

According to people close to the matter, the deal could involve both narrowbody jets, used for shorter trips, and widebody jets, which are larger planes used for long international flights. While the final number is still being discussed, some reports say the deal could include anywhere from 200 to 500 planes.

The agreement is expected to be managed by China’s state-controlled aircraft purchasing agency, which handles large plane orders for the country’s airlines. These kinds of deals are often done at a national level, especially when they involve foreign manufacturers.

The deal could help Airbus strengthen its hold in China’s huge aviation market. The company already has a final assembly line in Tianjin, which helps speed up delivery of its popular A320 planes to Chinese carriers.

China Faces Crushing 245% Tariffs in Trade War With the U.S.

Airbus Gains as Boeing Stumbles Under Pressure

While Airbus is gaining more business in China, its U.S. rival, Boeing, is facing serious challenges. Boeing was once a major player in China’s aviation market, but that changed after two deadly crashes of its 737 Max jets. In 2019, China became the first country to ground the 737 Max, and the model’s reputation never fully recovered.

Boeing’s troubles have only grown during the tariff war between the U.S. and China. Since 2018, trade tensions have made it difficult for Boeing to win orders. The current U.S. President, Donald Trump, has taken a hard stance against China in trade talks. In a recent social media post, Trump said that President Xi Jinping was “very tough to make a deal with,” highlighting just how difficult negotiations have become.

In April, Chinese authorities told airlines to pause deliveries of Boeing jets, a move widely seen as punishment in the ongoing trade dispute. Boeing also suffered a major quality scare in January 2024 when a door plug blew out mid-flight, which further damaged its public image and slowed down production.

Boeing hasn’t won a major order from China since at least 2017. With both safety issues and political tensions piling up, the company is losing ground fast to Airbus in what was once a more balanced market.

Meanwhile, Airbus stock rose as much as 4.1% in Paris trading, and Rolls-Royce Holdings Plc, which makes engines for Airbus’s widebody jets, gained up to 0.7% in London after news of the possible China deal broke.

Jet Crisis! Boeing Forced to Fly 737 Max Jets Back Home Amid Tariff War As China Halts Deliveries

Politics Deeply Tied to Plane Purchases

Airplane sales are not just about business—they are closely connected to global politics. The likely timing of this potential deal with Airbus is no coincidence. European leaders like French President Emmanuel Macron and German party leader Friedrich Merz are planning to visit Beijing in July. Their countries, France and Germany, are also the two biggest shareholders in Airbus.

A major Airbus order during the visit would send a clear political message from China: support for Europe, and distance from the United States amid tense trade relations.

These kinds of moves are not new. Earlier this year, President Trump helped secure a massive order for 210 Boeing planes from Qatar Airways during his Middle East trip. These political events often include aircraft deals as part of broader economic and diplomatic packages.

In this case, China may be turning to Europe and Airbus as a way to avoid involving the U.S. in a high-profile trade event. Some reports say that the widebody portion of the order could include the Airbus A330neo, a twin-aisle model that fits China’s need for long-haul routes. Boeing has traditionally sold more widebody jets to China, so this shift would be a significant change.

If the total order does reach 500 aircraft, it would surpass a previous 2022 deal for about 300 Airbus planes and could rank among the biggest airplane purchases globally—similar to or larger than recent Indian airline orders made in 2023.

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