Boeing to Sell 300 Jets to Three Chinese Companies

The agreements include orders and commitments for 300 Boeing narrowbody and widebody aircraft and expanded collaboration between Boeing and China’s commercial aviation industry.

For the deal, it has signed an agreement with China Aviation Supplies Holding Company.

“It’s the most important individual market in the world“, said Cai von Rumohr, who covers aerospace for Cowen and Company.

Shares are slipping 2.93% to $127.88 on Thursday morning. We believe that the country would be able to return to growth in the long-run, and Boeing’s move to increase its focus in the region would offer dividends to investors. The company’s strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance.

Earlier on Wednesday, the Chinese president spoke about the status of his country’s economy at a gathering of USA business leaders, including Warren Buffett and Apple boss Tim Cook.

China invested a record $83 billion in renewable energy previous year, according to the Frankfurt School’s Center for Climate and Sustainable Energy Finance in Germany.

The wording echoes the “new model of major country relations” phrase that Chinese officials use to describe ties with the United States, suggesting parity between the powers. Boeing said the Chinese facility won’t reduce employment levels at its plants in Washington state. Caterpillar (NYSE:CAT) and Joy Global (NYSE:JOY) already have plants in China, and General Electric (NYSE:GE) is moving some of its power turbine work to China due to the expiration of the Export-Import Bank’s charter.

Xi Jinping noted the cooperation of Boeing and China is a good example for China-U.S. economic and trade cooperation.

Boeing is battling with Airbus Group for dominance of Chinese market, which Boeing says will need $1 trillion worth of new planes over the next two decades.

“Our companies have committed to work together to expand Boeing and China’s mutually beneficial supplier-partner relationship”, said Kent Fisher, vice president and general manager, Supplier Management, Boeing Commercial Airplanes.

“Opening up a finishing center – that’ll just be the start”, Robley Evans, president of the worldwide Association of Machinists District 751’s Local F unit said in between honks of support, while standing outside the Renton plant Wednesday.

With these numbers, the south Asian giant would displace the U.S.as the largest aircraft market.

Airbus’ Alabama Facility-A Threat To Boeing?

An agreement with China could open up more of that nation’s massive market to American companies, provide clearer rules for Chinese investment in the US, and create jobs in both countries, supporters say.