Boeing and Chinese Airlines In Talks for US$30 Billion Mega-Deal That Trade War Could Derail (excerpt)

(Source: Bloomberg News; published June 06, 2019)

Boeing has been negotiating one of the largest orders ever of widebody jetliners with Chinese airlines even as tensions between Washington and Beijing escalate, say people familiar with the talks.The discussions center on about 100 twin-aisle jets: 787 Dreamliners as well as 777X planes, the newest long-range aircraft in Boeing’s line-up, said one of the people, who asked not to be named as the talks are private.Negotiations have focused in particular on the 777-9 variant, the planemaker’s costliest jet with a US$442.2 million sticker price, ahead of the model’s expected first flight later this month.No deal is imminent, the people cautioned, and the trade war is a major complication for all involved. The Chinese side is waiting for guidance from the government before pushing forward with the discussions, according to some of the people, as the tit-for-tat fight between the US and China intensifies.The battle over trade and technology between the world’s two biggest economies has entered a new phase, with allegations that China reneged on commitments made at the negotiating table triggering a fresh round of tariffs and smashing a months-long detente. (end of excerpt)-ends-