China Signals Intent to Purchase Up to 120 Airbus Aircraft from Europe

German Chancellor Friedrich Merz announced that China has agreed to purchase up to 120 aircraft from European manufacturer Airbus. The announcement, made Wednesday in Beijing, followed high-level talks between Merz and Chinese President Xi Jinping, underscoring the deepening economic ties between the two nations amid global trade uncertainties.

The potential aircraft order represents a significant development for the European aviation industry and comes as Germany seeks to solidify its position with its largest trading partner. The deal highlights the complex interplay of commerce and diplomacy that defines modern international trade policy.

Deepening Economic Ties

Chancellor Merz's visit to Beijing, accompanied by a delegation of top German business leaders, was aimed at reinforcing decades-old economic connections. According to the Federal Statistical Office of Germany (Destatis), China overtook the United States to become Germany's most important trading partner in 2025. The total trade volume between the two countries reached 251.8 billion euros that year.

However, the relationship is not without its imbalances. German imports from China in 2025 stood at approximately 170.6 billion euros, while exports to China were valued at 81.3 billion euros. This resulted in a significant trade deficit for Germany of approximately 89.3 billion euros. Merz described the potential Airbus deal as a demonstration of how "worthwhile such trips can be," suggesting it could help address this trade gap. He also noted that other contracts were in the pipeline.

The German delegation included executives from automotive giants Volkswagen, BMW, and Mercedes, signaling the broad scope of economic interests being discussed. During a meeting with Premier Li Qiang, Merz emphasized the need for "fair" cooperation.

Aviation Market Implications

The prospective order for 120 aircraft would be a substantial win for Airbus, strengthening its foothold in the critical Chinese aviation market, which is one of the fastest-growing in the world. Historically, China has often balanced its large aircraft orders between Airbus and its primary competitor, Boeing, with purchase decisions frequently aligning with broader geopolitical developments. This agreement could tilt the scales in favor of the European manufacturer within the region.

The deal is also a key element of the broader European Union (EU)-China relationship. China's top diplomat, Wang Yi, recently expressed a desire for Germany to be a "stabilising anchor for strategic relations" within the EU. Large-scale commercial contracts like the Airbus order are a practical manifestation of this strategic engagement.

Navigating Trade Tensions

Despite the positive announcements, the visit occurs against a backdrop of persistent trade friction. European businesses have voiced growing concerns about what they perceive as unfair competition from China. Issues cited include state subsidies that allow Chinese companies to flood European markets with low-cost goods, overcapacity in key industries, and an undervalued currency.

Wolfgang Niedermark of the Federation of German Industries articulated these concerns ahead of the trip. "We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials," he stated. Niedermark urged Merz to advocate for "structural reforms to strengthen domestic demand and fairer competitive conditions" in China, warning that a failure to do so could lead to "new trade conflicts with the EU."

Beijing has previously demonstrated its willingness to use economic leverage during disputes. In late 2025, China temporarily halted the export of Nexperia chips to Europe following a disagreement with the Dutch government, showcasing its control over critical supply chains.

Why This Matters

This potential aircraft deal underscores the deep economic interdependence between Germany and China, even as Berlin officially regards Beijing as a systemic rival. For the aviation industry, it represents a major potential order for Airbus that highlights how high-stakes aircraft sales are intertwined with international diplomacy and trade policy. The agreement, if finalized, could influence the long-term competitive balance between Airbus and Boeing in one of the world's most important and dynamic aviation markets.

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