Published: Sun, November 12, 2017
Markets | By Erika Turner

General Electric signs $3.5 bln deals in China

General Electric signs $3.5 bln deals in China

The deal that was signed by China on Thursday is actually a part of a multi-million dollar agreement which was announced and signed between China Aviation Suppliers Holding Company and Kevin McAllister, president and CEO of Boeing Commercial Airplanes, when President Donald Trump visited China and met with Xi Jinping.

The orders and commitments for single aisle and twin aisle aircraft are valued at $37 billion at list prices, according to the company's announcement of the agreement. The breakdown between firm orders and non-binding commitments was not immediately available.

Analysts said that part of the order might be amongst the more than 300 planes from buyers who were undisclosed that were posted during the year and that it was not yet known how much of the deal in China was new business. Boeing had 323 orders by unidentified customers as of November 7, of which 282 were for its 737 narrow body family. The order includes 100 Airbus narrow body models for the A320, and 40 wide body A350s.

Boeing has secured a $37bn (£28bn) deal for China to buy 300 of its aircraft as the country looks to cater for rising demand by picking up new planes.

Separately on Thursday, Boeing said it had received orders for 42 B-737 MAX jets and 10 B-787-9 Dreamliners from CDB Aviation, a unit of China Development Bank Financial Leasing Co (1606.HK).

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On Wednesday, Boeing Co. confirmed that they've won the Chinese deal according to which they will be selling three hundred planes to China, worth nearly $37 billion.

This is not the first time China Aviation Supplies has been involved with large deals during previous government exchanges. In October, it said it would purchase 39 wide-body jets from Singapore Airlines.

According to Boeing's latest market outlook, China is expected to need 7,240 new aircraft over the next 20 years, valued at almost 1.1 trillion US dollars.

GE's power division also signed a partnership agreement with China Datang Group to provide gas- and steam-powered turbines and components, plus services and digital technology for power projects in China.

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