China to buy 200 Boeing jets, seeks extension of US trade truce

BEIJING: China has announced plans to purchase 200 Boeing aircraft and will seek an extension of its trade truce with the United States, as the world’s two largest economies move to stabilise strained economic ties following a high-level summit between Chinese President Xi Jinping and US President Donald Trump.

The announcement was made by China’s commerce ministry, confirming for the first time the large-scale Boeing deal, though it did not specify the aircraft types.

If finalised, the agreement would mark Boeing’s first major breakthrough in China in nearly a decade, after being largely sidelined from the Chinese market amid prolonged trade tensions between Beijing and Washington.

US President Donald Trump visited China last week for talks with President Xi Jinping, where both sides outlined a series of trade understandings, including aircraft purchases and expanded agricultural access.

Trump later said Boeing orders could eventually rise to as many as 750 aircraft, which would reportedly be powered by GE Aerospace engines.

Beijing also confirmed that under the deal, the United States would provide guarantees on the supply of aircraft engine parts and components.

TRADE TRUCE EXTENSION

China said both sides will work towards extending a tariff truce set to expire in November, while also exploring reciprocal tariff reductions on goods worth at least $30 billion each.

Chinese officials said US tariffs on Chinese products should not exceed levels agreed under a previous arrangement.

Market analysts, however, described the move as limited in economic impact but positive for diplomatic stability.

“If they cut tariffs for products around $30 billion, it would be around 10% of US imports from China. This is not significant enough to change the market’s GDP forecast,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

“Nonetheless, this is a positive step in the right direction.”

The two countries had earlier agreed in Kuala Lumpur to extend their tariff truce for one year, including US tariff reductions on Chinese goods and a pause on Beijing’s restrictions on rare earth exports.

The latest statement comes amid continued uncertainty, with US Treasury Secretary Scott Bessent saying Washington was “not in a rush” to extend the trade and critical minerals arrangement.

Both sides have now pledged to address export control concerns, including China’s review of rare earth mineral licences for civilian use.

AGRICULTURE AND MARKET ACCESS

According to the White House, China has also agreed to purchase at least $17 billion worth of US agricultural products between 2026 and 2028, excluding existing soybean commitments.

While Beijing did not confirm the figure, it said both sides had achieved “positive results” in agriculture and agreed on improved market access.

China said it would resume registration of eligible US beef exporters and restart imports of certain poultry products.

In return, the United States has pledged to ease several non-tariff barriers affecting Chinese agricultural exports, including steps to facilitate dairy shipments.