China to Order 120 Airbus Jets, German Chancellor Says

German Chancellor Friedrich Merz announced during a state visit to Beijing that China is expected to place a substantial new order for up to 120 additional aircraft from Airbus. The statement underscores the deepening relationship between the European aerospace manufacturer and one of the world's most critical aviation markets.

This potential agreement, if finalized, would further solidify Airbus's dominant position in China, where its market share had already surpassed that of its main rival, Boeing. The deal highlights the significant role of geopolitical factors in large-scale aircraft procurement, as European-Chinese trade relations appear to facilitate major commercial wins while US-China tensions continue to impact American manufacturers. The order comes as China's domestic air travel market experiences explosive growth, far exceeding pre-pandemic levels.

Diplomatic Announcement and Market Context

During his visit in February 2026, German Chancellor Friedrich Merz confirmed the impending deal. "The Chinese leadership will be ordering a larger number of additional aircraft from Airbus. The total order will include up to 120 additional aircraft... it demonstrates how worthwhile such trips can be," Merz stated. While details regarding the specific aircraft models were not disclosed, such large orders typically involve the popular narrow-body A320neo (Airbus A320neo New Engine Option) family, many of which are assembled at Airbus's Final Assembly Line (FAL) in Tianjin.

This announcement follows a period of consistent gains for Airbus in the region. According to company data, Airbus's in-service fleet in China comprised over 2,200 aircraft as of mid-2025. By the end of that year, its market share had climbed to approximately 55%, a significant milestone first achieved in 2019 when the number of Airbus jets in China surpassed Boeing's for the first time, per an analysis from Cirium. This momentum is crucial in a market that Airbus's own Global Services Forecast from January 2026 projects will require approximately 9,570 new aircraft over the next two decades.

The Competitive Landscape: Airbus, Boeing, and COMAC

The prospective order accentuates the ongoing rivalry between Airbus and Boeing. Historically, China has balanced its orders between the two aerospace giants, often aligning procurement decisions with the broader geopolitical climate. However, persistent trade disputes between Washington and Beijing have created headwinds for Boeing, while Airbus has capitalized on its strong industrial presence and more stable European diplomatic ties.

Airbus's strategic localization efforts, centered on its Tianjin FAL, have been instrumental in its success. The facility not only produces A320 family aircraft for Chinese airlines but also serves other carriers in the region, embedding Airbus within the local aerospace ecosystem.

Simultaneously, the domestic challenger, the Commercial Aircraft Corporation of China, Ltd. (COMAC), is steadily gaining ground. Its C919 narrow-body jet, a direct competitor to the A320neo and Boeing 737 MAX, has secured over 1,000 orders, primarily from domestic airlines. While COMAC is not yet a global threat to the duopoly, its rise signals Beijing's long-term ambition to achieve self-sufficiency in aircraft manufacturing. Any final aircraft order from China will be subject to oversight from the Civil Aviation Administration of China (CAAC), which also oversees the certification and integration of the C919 into domestic airline fleets.

Future Outlook and Market Growth

The potential order for 120 aircraft is driven by China's robust aviation recovery and expansion. Data from an Airbus report in January 2026 revealed that China's domestic passenger volume in 2025 grew by a remarkable 17% compared to the pre-pandemic benchmark of 2019. This rapid growth necessitates significant fleet expansion by Chinese carriers to meet demand.

If the order is confirmed, it will provide a significant boost to Airbus's backlog and production rates. It will also likely reinforce the strategic importance of the Tianjin assembly line, potentially leading to further investment in its capacity and capabilities. The final composition of the order and the delivery timeline remain to be announced, pending formal agreements between Airbus and the respective Chinese airlines or procurement agencies.

Why This Matters

This development is more than a commercial transaction; it is a clear indicator of how geopolitical currents are reshaping the global aerospace industry. For Airbus, it represents a major strategic victory, cementing its leadership in a market forecast to be the world's largest. For Boeing, it underscores the urgent challenge of navigating complex US-China relations to regain lost ground. The deal also serves as a reminder that while China develops its own domestic champion in COMAC, its short-to-medium term fleet needs will continue to be met by the established global manufacturers, with diplomatic relationships playing a key role in determining who wins.

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