Boeing shares slide as Donald Trump’s China summit deals disappoint

{"text":[[{"start":null,"text":"

"}],[{"start":null,"text":""}],[{"start":8.65,"text":"Boeing shares slid after Donald Trump announced that China had purchased 200 planes, following speculation of a possible “mega order” during the US president’s summit with Chinese leader Xi Jinping."}],[{"start":21.3,"text":"A Chinese purchase of US-made planes was among the deals being most closely watched by investors during Trump’s two-day visit to Beijing, as well as possible progress in areas including agriculture, rare earths and semiconductors."}],[{"start":34.8,"text":"The US aerospace group’s shares closed 4.7 per cent lower on Thursday following Trump’s statement to Fox News."}],[{"start":42.349999999999994,"text":"Trump later told reporters that China had made a commitment to potentially purchase up to 750 planes as Boeing’s shares declined a further 0.9 per cent in pre-market trading on Friday. "}],[{"start":53.64999999999999,"text":"Boeing said: “We had a very successful trip to China and accomplished our major goal of reopening the China market to orders for Boeing aircraft. This included an initial commitment for 200 aircraft and we expect further commitments will follow after this initial tranche. We’re very thankful to President Trump and the Administration for making this milestone happen and we now look forward to continually addressing China’s aircraft demand.”"}],[{"start":79.79999999999998,"text":"Trump and Xi held a two-hour bilateral discussion on Thursday followed by a tour of Beijing’s 15th-century Temple of Heaven and a state banquet. The two presidents on Friday met over tea and lunch in the Chinese capital before Trump departed for the US."}],[{"start":95.14999999999998,"text":"Trump was accompanied on his trip by a delegation of business leaders including Tesla and SpaceX boss Elon Musk, Apple chief executive Tim Cook and Nvidia head Jensen Huang, as well as Boeing’s Kelly Ortberg."}],[{"start":108.09999999999998,"text":"Ahead of the trip the president and US officials had promised deals across oil, planes and agricultural goods, but few concrete details have been confirmed by the Chinese side."}],[{"start":119.19999999999997,"text":"Xi told the groups on Thursday that China’s door to business “will only open wider and wider” but offered no specific measures, and there have been no announcements on changes to US export controls on sales of chips to China or Chinese curbs on American access to rare earths, priorities for both sides."}],[{"start":139.29999999999998,"text":"The Boeing deal was the first disclosed during the trip. In the same interview with Fox News, Trump said China has agreed to expand purchases of US farm products and oil and gas."}],[{"start":150.04999999999998,"text":"“One thing I think that we’re going to make a deal on, they’ve agreed they want to buy oil from the United States,” Trump said. “We’re going to start sending Chinese ships to Texas and to Louisiana and to Alaska . . . that’s a big thing.”"}],[{"start":162.35,"text":"China’s foreign ministry, when asked about the aircraft and oil deals on Friday, did not directly comment. Guo Jiakun, the ministry’s spokesperson, told reporters that “both sides should work together to implement the important consensus reached by the two heads of state”. "}],[{"start":178.15,"text":"Jamieson Greer, Trump’s trade representative, said that, beyond the Boeing sale and an earlier soyabean deal covering 25mn tonnes of purchases a year, the US expected China’s annual purchases of American agricultural products to expand by “double-digit billion [dollars]” over the next three years."}],[{"start":196.85,"text":"“We’re in a situation where we are trying to rebalance our trade with China; we’ve had a lot of success in that,” Greer told Bloomberg television in an interview on Friday."}],[{"start":206.15,"text":"One senior American business leader based in China, who asked not to be named, said the broader trade stabilisation, alongside the purchasing deals, would be welcomed by the business community."}],[{"start":217.20000000000002,"text":"But he said companies need “further clarity” on the timeline of the deals, as well as any progress on China easing rare earth export controls and other regulations."}],[{"start":228.45000000000002,"text":"On the eve of Trump’s trip, analysts from Jefferies, the investment bank, said Boeing had been negotiating a “mega order” with China for up to 500 aircraft."}],[{"start":239.70000000000002,"text":"Beijing’s most recent significant purchase from the US aircraft manufacturer came during Trump’s previous trip to China in November 2017, covering 300 planes valued at more than $37bn. "}],[{"start":253.3,"text":"Few details of the interactions between the US business leaders and Chinese officials have been made public."}],[{"start":259.55,"text":"But Huang, the Nvidia boss who has been trying to secure access to the Chinese market for high-end chips, did not return to the US with the rest of Trump’s delegation. A person familiar with his schedule told FT that the tech billionaire held a separate meeting with Ren Hongbin, chair of the China Council for the Promotion of International Trade."}],[{"start":278.8,"text":"Additional reporting by Tina Hu and Cheng Leng in Beijing and Christian Davies in New York "}],[{"start":292.85,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778887905_6160.mp3"}