Boeing stock gains on Uzbekistan order as China deal looms

Boeing's stock rose Tuesday after the company announced a significant order from Uzbekistan, a development that coincides with growing optimism about a potential sale to China. Uzbekistan Airways said it would buy up to 22 787 Dreamliners, comprising 14 firm jets with options for eight more. Boeing described the deal as expanding the airline's international routes and supporting nearly 35,000 U.S. jobs. The stock closed 2% higher, lifting its year-to-date gain to about 22.2%. The Uzbekistan deal also drew attention to any potential China agreement, though value figures circulated by former President Donald Trump on social media could not be independently verified, and Boeing declined to comment on the post or provide clarity when asked by The Associated Press. The White House did not immediately respond to requests seeking further information.

U.S. Ambassador to China David Perdue said negotiations over a possible Boeing order from China were likely in their final days or weeks. Speaking in Beijing on Tuesday during a visit with a delegation of U.S. lawmakers, Perdue did not disclose any specifics about a pending transaction. His comments came a day after Boeing announced the Uzbekistan deal, underscoring a broader push by Washington to reestablish Boeing’s footprint in China amid years of tension and hesitation around large commercial aircraft orders.

The China deal would mark the first major sale to the country in years. Boeing has continued to deliver planes to China, but the market contracted after China grounded all 737 Max planes in 2019 following two fatal crashes that killed 346 people. Chinese airlines did not resume Max flights until January 2023, well after carriers in many other regions. U.S. Rep. Adam Smith, the top Democrat on the House Armed Services Committee, told reporters in Beijing that Boeing airplanes have been scarce in China for some time and that efforts to secure a deal would be welcome: “We’d like to get that deal done.”

Boeing’s recent woes have weighed on the company’s finances and reputation. In January of last year, a door-plug panel blew off a 737 Max shortly after takeoff from Portland, Oregon. In July, federal prosecutors revived a criminal fraud charge against Boeing in connection with the 2018 and 2019 crashes. A nearly eight-week strike by machinists who assemble the 737 Max and two other Boeing aircraft in Washington state also disrupted production and added to the company’s struggles. Despite these challenges, Boeing has sought to reverse course as it pursues new orders and works to rebuild confidence with customers and regulators.

The political and economic backdrop also matters for Boeing. Since President Donald Trump returned to the White House this year, his administration has highlighted Boeing as a flagship U.S. manufacturing success story and a potential pivot point for domestic supply chains. Trump has said he would meet Chinese leader Xi Jinping at a regional summit in South Korea at the end of October and plans to visit China in the early part of next year, following a lengthy phone call between the two leaders last Friday. Analysts caution that any large-scale sale to China remains complex, involving licensing, security reviews, and a grist of strategic considerations for both governments. Still, the Uzbekistan deal and the ongoing dialogue in Beijing underscore Boeing’s precarious balance between global demand for widebody jets and political risk that can influence major international sales.