Boeing shares rise 3% as US Treasury hints at major Chinese aircraft orders
Shares climb in pre-market trading as officials discuss new trade boards and potential country-level agreements, with Boeing CEO Kelly Ortberg expressing confidence in negotiations.
Boeing shares climbed 3% in Thursday’s pre-market session following comments from US Treasury Secretary Scott Bessent indicating that significant aircraft orders from China are likely. The remarks coincided with the commencement of President Donald Trump’s two-day summit with Chinese President Xi Jinping in Beijing, where broader US markets also posted gains. The Dow Jones Industrial Average rose 0.8%, the S&P 500 increased 0.3%, and the Nasdaq Composite climbed 0.2% as investors reacted to the diplomatic developments.
Bessent told CNBC on Thursday, "I think we're going to see the large Boeing orders." His comments came as US and Chinese officials discussed establishing a "Board of Trade" to oversee bilateral commerce and a separate "Board of Investment" to manage non-sensitive investments. The new investment board is designed to review Chinese investment plans to ensure they do not fall under the purview of the Committee on Foreign Investment in the United States (CFIUS), which Bessent chairs.
Boeing CEO Kelly Ortberg, who is part of Trump’s delegation in Beijing, had previously expressed confidence that the summit negotiations could result in country-level agreements, including aircraft purchases. During Boeing’s earnings call in April, Ortberg noted that Chinese airline purchases are dependent on broader bilateral relations and indicated that potential deals represented "a big number," though he did not provide specific figures.
The potential for renewed sales follows a period of significant disruption during Trump’s first term, when US-China tariff disputes led Beijing to halt Boeing deliveries and restrict new orders. Chinese carriers subsequently shifted more business toward Airbus SE, while analysts noted that domestic manufacturer Comac struggled to fill the gap due to limited production capacity. The last major Boeing order from China dates back to 2017.
While Boeing did not immediately respond to requests for comment, reports from August indicated the company was in talks for a potential order of up to 500 aircraft. That deal remains under negotiation and depends on the easing of trade tensions and discussions regarding aircraft types and delivery schedules. Ortberg joined the delegation of CEOs who arrived in Beijing on Wednesday evening, underscoring the commercial stakes of the ongoing diplomatic talks.
