China Plans to Order Up to 500 Airbus Aircraft Amid Tensions with Boeing

China is contemplating a substantial order of up to 500 aircraft from Airbus, according to recent reports, shortly after returning jets previously ordered from its American competitor, Boeing. This move further escalates the ongoing trade tensions between China and the United States.

Negotiations for this deal have been underway for over a year, but the estimated order size has expanded from an initial 300 to potentially 500 aircraft, encompassing both narrow and wide-body models, as reported by Bloomberg.

A formal announcement regarding the airline deal could occur as soon as next month during a projected visit by European leaders to Beijing.

The discussions on this significant order initially commenced during President Xi Jinping’s visit to France last year, a common practice for China to confirm large aircraft purchases as part of its diplomatic strategies.

Shares of Airbus experienced a rise of 2.4 percent in Paris, reaching €170.44, following the news about the potential order. The company chose to refrain from commenting on the report.

In April, China returned two aircraft to Boeing in response to tariffs imposed by President Trump. Boeing’s CEO, Kelly Ortberg, indicated that 50 additional planes were scheduled for delivery to China this year, but inquiries suggested that the customers were hesitant to accept them.

China’s embargo, which extended to US aircraft parts and equipment, was lifted in early May due to a temporary reduction in tariffs.

Trade discussions between the US and China are ongoing but appear to be facing significant challenges. President Trump expressed on social media earlier this week: “I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”

Airbus reported consolidated revenues of €13.5 billion for the first quarter, reflecting a 6 percent increase from €12.8 billion the previous year. The company delivered 136 commercial aircraft and received 280 gross orders, with a backlog of 8,726 commercial aircraft by the end of March.

Meanwhile, Boeing continues to navigate ongoing safety and production challenges.

If the final order does indeed total 500 aircraft, it would mark one of Airbus’s largest orders ever and the biggest for China, surpassing a previous agreement made in 2022 for approximately 300 single-aisle Airbus jets valued at around $37 billion.

In the UK, Airbus operates over 25 sites focused on aircraft, helicopter, defense, and space innovation, covering regions from Aberdeen to Portsmouth, including key centers for wing design and manufacturing located in Filton and Broughton.

Additionally, surging demand for new aircraft is noted in India, where the national airline, Air India, is negotiating a significant order for roughly 200 planes, while IndiGo, a budget airline, has recently expanded its order with Airbus.