Free Finance and Finance reported on the 13th that China plans to resume the introduction of the Boeing 737 MAX passenger aircraft in time for the US-China summit on the 15th.
Citing sources and foreign media familiar with the situation, the media reported that China is likely to promise to purchase the Boeing 737 MAX during the San Francisco summit between President Joe Biden and President Xi Jinping as a sign of improved relations between the two countries.
According to sources, President Xi Jinping will not directly announce a formal order for the 737 MAX, but it may take the form of a memorandum of understanding (MOU) and expression of intent (LOI) rather than a definitive order contract.
Sources observed that as negotiations surrounding the terms of the contract are continuing, the situation may change or break down by the day of the summit.
More than four years after Boeing grounded the 737 MAX, which caused two crashes, it is still looking forward to orders from Chinese airlines.
As of the end of June, commercial operations of the 737 MAX had resumed to about 90% in China.
Since 2017, Boeing has been largely excluded from new orders from Chinese airlines against the backdrop of heightened tensions due to US-China political and trade frictions.
The White House has made the resumption of military exchanges a top priority for this summit, but the media pointed out that the meeting between the leaders of the two countries for the first time in a long time provides an opportunity for aerospace-related trade to recover.
Liu Qing, president of Boeing’s China headquarters, said in a press conference with CCTV that the company had recently delivered four new aircraft to the orderer.
At the same time, President Liu Qing explained that one of the four aircraft was delivered to a Chinese airline. Boeing has delivered more than 2,000 aircraft ordered from China over the past 50 years.
Boeing predicted that China will reign as the world’s largest single aviation market for the next 20 years and that demand for new aircraft will exceed one-fifth of the world’s total.
After the 737 MAX crashed in succession in late 2018 and March 2019, causing massive casualties, the Civil Aviation Administration of China suspended the flight permit for this type of passenger aircraft.
Source: Donga
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