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China edges closer to Airbus mega-deal, leaving Boeing out in the cold: analysts

China Nears Major Airbus Deal Amid Boeing’s Decline in Chinese Market
China is reportedly on the verge of finalizing a substantial aircraft order with European aerospace leader Airbus, potentially acquiring between 100 and 200 new jets. This development would further solidify Europe’s position as China’s preferred supplier of commercial aircraft, despite the continued reliance of some Chinese airlines on American manufacturer Boeing.
Shifting Dynamics in China’s Aviation Sector
Boeing, which once held a dominant position in the Chinese market, has not secured a significant order from China since 2017. This prolonged absence coincides with escalating trade tensions between Beijing and Washington, compounded by a series of challenges for the US company. These include labor strikes, financial setbacks, and high-profile accidents such as the recent Air India crash involving a Boeing 787 Dreamliner, which resulted in at least 270 fatalities.
Industry analysts suggest that China’s potential Airbus order could inflict a serious blow to Boeing’s market share as the country’s aviation sector continues to grow rapidly. Airbus’s European base may provide logistical and diplomatic advantages for Chinese buyers increasingly cautious of geopolitical risks and safety concerns associated with US suppliers. Concurrently, China is advancing production of its domestically developed Comac C919 passenger jet, further diversifying its fleet away from American manufacturers.
Brian Yang Bo, an aviation industry veteran and independent consultant, noted, “Buying from Airbus makes a lot of sense now, both commercially and diplomatically. But carriers with Boeing-only fleets are caught on the back foot.”
Market Implications and Future Prospects
The market has already reacted to the news, with Airbus shares rising amid expectations of increased orders. Conversely, Boeing’s position could deteriorate further if it remains excluded from China’s recent aircraft procurement activities. Some analysts argue that Boeing may need to renegotiate terms or explore alternative markets to compensate for the potential loss of Chinese business.
As China moves closer to securing a landmark deal with Airbus, the divide between the two aerospace giants in the Chinese market appears set to widen, presenting Boeing with mounting challenges in one of the world’s most vital aviation arenas.

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