China may end its freeze on Boeing 737 Max deal
China is thinking about buying Boeing 737 MAX planes at the APEC Summit in San Francisco, where Presidents Joe Biden and Xi Jinping will meet, reported Bloomberg. However, the details of the deal are still being discussed and could change before the summit. If there's an agreement, it might be a memorandum of understanding, not an official order. Boeing hasn't made any major sales of its 737 MAX narrowbody jets in China since 2018.
Why was Boeing put on hold in China?
Boeing's 737 MAX sales in China were put on hold due to two crashes that resulted in a worldwide grounding of the model and, worsening relations between the governments of the United States and China, which hampered commercial dealmaking. Currently, Boeing has about 85 737 MAX jets designated for China in storage. Resuming deliveries could help Boeing achieve its goal of delivering 375-400 of these aircraft this year, offering a considerable boost to the company's outlook.
Resuming trade relations between China and the US?
China's potential decision to restart Boeing 737 MAX purchases could have far-reaching consequences for both Boeing and the aviation industry as a whole. As the world's second-largest aviation market, China's renewed interest in purchasing these aircraft could signify restored faith in their safety and dependability. Furthermore, it may also hint at a possible easing of trade tensions between the US and China, potentially paving the way for more commercial dealmaking opportunities between the two countries.
