China is considering placing a major order for Airbus aircraft, potentially involving as many as 500 jets, as European leaders prepare to visit Beijing in July to mark 50 years of diplomatic relations between China and the European Union, Bloomberg reported. The prospective China Airbus aircraft order would represent one of the largest in the country's aviation history and could serve as a geopolitical signal amid ongoing trade tensions with the United States.

According to people familiar with the matter, discussions are ongoing between the Chinese government and domestic airlines regarding the size and scope of the deal. The order would likely include a mix of narrowbody and widebody aircraft, with early estimates suggesting a range of 200 to 500 planes.

The final size of the order remains undecided, and negotiations are still fluid. Sources cautioned that the talks could fall apart or be delayed. However, should the deal go through, it would surpass a 2022 agreement for about 300 Airbus jets valued at $37 billion and could rival Air India’s 2023 purchase of 470 planes from Airbus and Boeing combined.

Airbus declined to comment on the matter. Representatives from China’s Civil Aviation Administration also did not respond to requests for comment. The transaction is expected to be brokered through China’s state-run aircraft procurement agency, which typically negotiates on behalf of the country's carriers.

Deal may coincide with EU-China diplomatic anniversary

French President Emmanuel Macron and German Chancellor Friedrich Merz are among the European leaders expected to visit Beijing in July, underscoring the strategic nature of the potential deal.

Both France and Germany are key stakeholders in Airbus, and a high-profile China Airbus aircraft order would send a clear diplomatic signal of Beijing’s intent to deepen ties with Europe.

Analysts say such a move could also be aimed at drawing a contrast with the deteriorating trade relationship between China and the United States.

President Xi Jinping could leverage the deal to highlight alternative alliances amid Washington’s attempts to reshape global trade norms under President Donald Trump’s second term.

Beijing continues to sideline Boeing amid trade rift

While Airbus stands to gain, its US rival Boeing remains sidelined in China. Trade tensions and safety controversies have kept Boeing largely shut out of the Chinese market since 2017. In April, Chinese regulators reportedly instructed domestic airlines to halt deliveries of Boeing jets, extending a pattern of exclusions dating back to the grounding of the 737 Max, which continued through the 2024 mid-air door plug failure.

Boeing’s absence from the Chinese market, once evenly split between the two major aircraft manufacturers, has allowed Airbus to gain a dominant position.

Industry sources said widebody aircraft are expected to form a significant portion of the new order.

The Airbus A330neo, a smaller twin-aisle model, is reportedly among the planes being considered. China's backlog for widebody aircraft has been shrinking, and Airbus' widebody jet sales to China could help fill the gap as demand for long-haul travel grows.

Historically, Boeing has sold more widebodies in China, but with its access now restricted, Airbus is in a strong position to supply state-run and private carriers.

Airbus poised to solidify lead in Chinese market

With China and the US still struggling to resolve key trade issues, ranging from critical minerals access to fentanyl-related enforcement, any move by Beijing to finalize a large Airbus order would reaffirm its strategic pivot toward Europe.

The prospective deal also follows a temporary easing of tariffs between the US and China earlier this year, which has yet to translate into major commercial cooperation.

While both Airbus and Boeing have benefited from record-breaking orders in India in recent years, China’s next move could reshape the balance in the global aviation market for years to come.