Boeing shares fell sharply after initial optimism over a Chinese aircraft order turned to disappointment when the reported commitment fell well below market expectations.
U.S. Treasury Secretary Scott Bessent told CNBC on Wednesday that he expected “large Boeing orders” to be announced during President Trump’s visit to Beijing. The comments sent Boeing stock up 1.2% in premarket trading Thursday, as investors bet on a deal that could reach 500 planes — a figure widely circulated on Wall Street.
However, when Trump told reporters on Thursday that China was preparing a 200-plane order, the stock dropped 4.7% on the day, even as the S&P 500 and Dow both gained about 0.8%. On Friday, Trump raised the ceiling, saying China had agreed to 200 jets with a potential commitment to purchase up to 750 aircraft powered by General Electric engines. Despite the prospect of a much larger deal, Boeing shares fell another 1.3% in Friday’s premarket.
The disappointment stems from years of anticipation. China has not placed a new 737 order in years, and the nation now represents only about 2% of Boeing’s undelivered backlog — down from over 20% of deliveries between 2010 and 2019. Even a smaller order would mark Boeing’s first major Chinese deal in nearly a decade and could be critical to tapping a market projected to need 8,800 new planes over the next 20 years.
Boeing, which holds more than 6,800 unfilled global orders, has been struggling with manufacturing and design problems that have weighed on production and sunk the stock roughly 45% from its early 2019 record high. CEO Kelly Ortberg, who joined Boeing in 2024 to lead a turnaround, accompanied Trump on the trip. High oil prices — still above $105 a barrel after spikes tied to Middle East tensions — add another headwind, as they can dent airline profits and demand for new aircraft.
