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Daily Insight: Tuesday 26 March 2019: International Trade and Narrow-Body Aircraft

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News

Airbus and China agreed to a massive order for 300 aircraft earlier this week, culminating negotiations underway for some time.  The deal was announced at a summit of the French President Macron and Chinese Chairman Xi Jinping.

With China having been the first to ground the 737MAX and now placing an order for 290 of the competing A320neo, plus 10 A350 wide-bodies, the question is whether this order has any relationship to the US-China trade negotiations.

Analysis

China said yesterday that it is looking at excluding the Boeing

737MAX from a list of US exports that it would be as a part of a trade deal with the US, according to Reuters.  But to do so would potentially be an irreversible option for China, which has traditionally played off the two manufacturers against each other to obtain a better deal.