China to purchase 300 Boeing jets

China will purchase 300 Boeing aircraft jets in a massive $38 billion deal that will also see an first aircraft assembly plant built in the Asian country.

The business deals were signed in Seattle during Chinese President Xi Jinping’s first state visit to the United States.

The Boeing order includes 190 of the 737 model aircraft, 50 wide-body planes for Chinese airlines, and 60 single-aisle planes for leasing companies. China Aviation Supplies, ICBC Financial Leasing and China Development Bank Leasing will purchase the planes.
Earlier, Inspur, a Chinese cloud computing and data-cener company, said that it will team up with Cisco Systems to sell networking technologies and products in China.

Boeing, based in Chicago, sold a record 155 jets to Chinese customers last year and a quarter of its jets have been delivered there so far this year. It projects that it could sell China 6,330 planes worth $950 billion during the next 20 years, which would see the country overtake the US as the world’s biggest plane market.

Shares of Boeing Co. fell $2.32, or 1.7%, to close at $131.67 Wednesday.

The aircraft assembly plant will be Boeing’s first non-US plant, and signals its intent to match its European rival Airbus’ Chinese presence.

Airbus opened its first assembly line outside of Europe in 2008, with a Tianjin facility that turns out four A320 aircraft per month. In July, Airbus signed a deal for a second completion and delivery center for A330 jets.