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China considers massive Airbus jet order amid shifting trade dynamics

China considers massive Airbus jet order amid shifting trade dynamics
Policy
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Airbus A330neo | Official Website

China is reportedly considering a significant order of Airbus jets, with numbers potentially reaching up to 500 aircraft. This development comes amid shifting economic conditions and trade barriers affecting the aviation industry. Bloomberg reports that European leaders are preparing to visit Beijing next month to celebrate the ongoing relationship between China and Europe.

The Chinese government, which owns all major airlines in the country, is eyeing both single-aisle and widebody aircraft. The bulk of the order is expected to be for Airbus A320neo family aircraft, already manufactured at Airbus' Tianjin facility. This potential purchase follows a 2022 order of 292 Airbus A320neo models.

No new Boeing orders have been placed by China since 2017, and sources suggest that the Airbus A330neo could be part of this large order, aimed at renewing fleets for carriers like Air China and China Southern.

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If realized, this order would surpass Air India's record-setting 470-jet purchase from 2023. Even on a smaller scale, it represents a substantial market impact, further strengthening Airbus' position in China's aviation sector while sidelining Boeing.

Airbus shares rose over 4% in Paris following the news, adding more than $5 billion to its market capitalization. Rolls-Royce also saw modest gains due to potential increases in orders for its Trent 7000 engines used in the A330neo. Meanwhile, Boeing's stock remained relatively unaffected as traders had already adjusted expectations regarding its prospects in China.

China's dominance in the commercial aerospace industry continues to grow as it seeks to develop domestic production capabilities with projects like COMAC C919. However, for now, Airbus remains a key player in this expanding market.

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