Three Chinese companies just inked a deal with Boeing to purchase $38 billion worth of aircraft from the American aircraft manufacturing company, China’s official news agency reported.
According to the Xinhua report, the deal signed on Tuesday was reached during Chinese President Xi Jinping’s first state visit to the United States.
After having signed the deal, the three Chinese companies — China Development Bank Leasing, China Aviation Supplies Holding Company and ICBC Financial Leasing Co., Ltd. — are set to acquire 300 planes from Boeing. But they’re not the only Chinese companies getting into business with the U.S. company, as the Commercial Aircraft Corporation of China Ltd. also signed a deal with Boeing.
Commercial Aircraft Corporation of China’s deal with Boeing entails the development of a 737 aircraft completion center which is to be constructed in China. The new facility, once it’s up, will be Boeing’s first non-US airliner plant.
The new plant will be tasked with not only finishing single-aisle 737s, but also the delivery of the jets to customers. As far as finishing the planes is concerned, the plant will handle the installation of interior and exterior paint exteriors.
The move on Boeing’s part comes as a result of the company finally throwing in the towel in the face of what Forbes contributor Loren Thompson referred to in a recent report as “severe pressure from state-subsidized foreign competitors” as well as “the end of federal export financing.”