By Ginika Igboke
China could agree to purchase additional Boeing aircraft during Chinese leader Xi Jinping’s expected visit to Washington in September, U.S. Treasury Secretary Scott Bessent said Wednesday.
Speaking before the Senate Finance Committee during a hearing on the Treasury Department’s fiscal 2027 budget request, Bessent referenced a prior agreement involving Chinese purchases of Boeing jets.
“They agreed to 200 airplanes during the visit. We will see if they commit to a larger number when Xi Jinping arrives in Washington,” he said.
The initial deal for 200 aircraft followed President Donald Trump’s visit to Beijing in May and was described by U.S. officials and Boeing as an early-stage agreement. China’s Commerce Ministry later confirmed the arrangement.
U.S. Says Broader Relations With China Are Stable but Competitive
Bessent told lawmakers that current U.S.–China relations show “very good stability,” but emphasized that Washington must continue reducing dependence on China in key sectors.
He warned that reliance on Chinese supplies of critical minerals, semiconductors, and pharmaceuticals remains “unacceptable,” urging continued efforts to diversify supply chains and reduce strategic vulnerabilities.
Bessent also criticized Chinese state practices in critical minerals markets, saying the United States is working to strengthen domestic production and resilience.
New Trade Mechanism Under Consideration
The Office of the U.S. Trade Representative (USTR) announced Tuesday that it is opening a public consultation process for a proposed U.S.–China Board of Trade, designed to address commercial disputes involving non-sensitive goods.
Public comments are due by July 10, and the proposal would explore possible reciprocal tariff adjustments on certain categories of low-risk imports.
Bessent said discussions could focus on products that do not pose strategic concerns for the United States, citing items such as fireworks, Halloween costumes, and other low-cost consumer goods.
Trade Tensions and Boeing’s Market Reopening
Trade relations between Washington and Beijing have remained strained for more than a decade, with both countries imposing tariffs on hundreds of billions of dollars in goods since the first Trump administration. Many restrictions have remained in place and were later expanded under the Biden administration, particularly in advanced technology exports.
The Boeing agreement represents a significant step forward for the company in China, where orders slowed for years amid trade tensions and regulatory challenges.
Analysts say additional aircraft purchases could follow if diplomatic and economic relations continue to improve. Some experts note that stronger institutional frameworks would be needed to separate commercial trade from national security concerns in any long-term agreement.
Despite ongoing strategic rivalry, the United States and China remain deeply interconnected economically, leaving room for targeted deals even as both countries continue efforts to protect critical industries.
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