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China’s Potential 737 MAX Deal with Boeing Could Signal Thawing Relations – Bloomberg

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Boeing 737 MAX 8 Planes Face Renewed Scrutiny After Second Crash In 5 Months

Joe Raedle/Getty Images News

As the U.S. and Chinese presidents prepare to meet during the APEC Summit in San Francisco, Bloomberg reported on Sunday night that China is contemplating the resumption of 737 Max aircraft purchases from Boeing (NYSE:BA).

The terms of this potential agreement are currently under discussion. Bloomberg’s report highlighted that these terms are subject to change or could even collapse before the scheduled meeting between President Biden and President Xi on Wednesday. Furthermore, the report indicated that an announcement might take the form of a memorandum of understanding rather than a formal order.

It’s worth noting that Boeing (BA) has not secured any significant sales of its 737 MAX narrowbody jets in China since at least 2018. This is in the backdrop of two crashes leading to a global grounding of the model and further worsening the commercial dealmaking prospects due to deteriorating relations between the two governments.

Boeing (BA) currently has approximately 85 737 MAX jets earmarked for China in storage. A potential restart in deliveries could significantly contribute to its goal of shipping 375-400 of these planes within the current year.

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