Treasury's Bessent Predicts Major Boeing Order on China Visit

• Discussions include Chinese purchases of U.S. energy, agricultural goods, and Boeing aircraft, with the goal of balancing trade through increased U.S. exports to China rather than solely reducing imports
• A proposed 'Board of Investment' would pre-screen Chinese investments to ensure they avoid strategic or sensitive sectors that would trigger CFIUS (Committee on Foreign Investment) review
• Bessent dismissed reports of a $1 trillion Chinese investment target, emphasizing the focus is on trade balance through expanding exports in non-strategic areas like fireworks

Summary

U.S. Treasury Secretary Scott Bessent announced expectations for a major Boeing aircraft order from China during President Trump's May 14, 2026 visit to Beijing. The anticipated deal is part of broader efforts to expand U.S. exports and rebalance trade between the world's two largest economies.

Key Developments:

During meetings with Chinese counterparts, U.S. and Chinese officials discussed establishing two new bodies:

• A "Board of Trade" to govern bilateral trade relations
• A "Board of Investment" to oversee Chinese investments in non-strategic U.S. sectors

Bessent dismissed speculation about a $1 trillion Chinese investment target, clarifying the investment board would pre-screen projects to ensure they avoid Committee on Foreign Investment in the United States (CFIUS) jurisdiction, which he chairs.

Trade Priorities:

Beyond Boeing aircraft, discussions covered potential Chinese purchases of U.S. energy and agricultural products. Bessent indicated certain goods, such as fireworks, would not be subject to reshoring efforts. The focus remains on ensuring Chinese investments stay within non-sensitive, non-strategic areas.

Strategic Context:

President Trump emphasized opening China's market and rebalancing trade. Bessent outlined two approaches to achieving balance: reducing U.S. imports from China or increasing American exports to China, with preference for the latter.

Market Implications:

The anticipated Boeing order could provide significant revenue for the aerospace manufacturer while signaling improved U.S.-China commercial relations. The proposed bilateral trade framework suggests both nations are seeking structured mechanisms to manage economic engagement while addressing national security concerns.