China to Buy Up to 120 Airbus Jets in Germany-China Deal

China Commits to 120 Airbus Jets During Chancellor Merz’s Visit

German Chancellor Friedrich Merz has secured a commitment from the Chinese government to purchase up to 120 additional aircraft from European aerospace manufacturer Airbus. The announcement was made on Wednesday, February 25, 2026, during the Chancellor’s inaugural state visit to Beijing, where he met with Chinese President Xi Jinping and Premier Li Qiang.

According to reporting by Euronews, the agreement serves as a central economic achievement of the diplomatic mission, which aims to deepen ties between the two major economies while addressing ongoing trade disparities. The deal underscores the continued reliance of Chinese carriers on European aerospace technology amidst a complex geopolitical landscape.

Details of the Agreement

Following a dinner meeting with President Xi, Chancellor Merz confirmed to reporters that Beijing intends to place Orders for a significant number of jets. While the specific breakdown of aircraft models, such as the single-aisle A320neo family versus wide-body A350s, was not immediately detailed in the initial reports, the total volume is quantified at “up to 120 units.”

Industry data suggests that a deal of this magnitude, assuming a standard mix of single-aisle jets, could carry a list price value of approximately $15 billion to $16 billion, though Airlines typically negotiate significant discounts for bulk orders. Crucially, Merz emphasized that these are “additional” aircraft, distinct from the approximately 145 firm orders placed by Chinese carriers in late 2025 and January 2026.

Addressing the Trade Deficit

The aerospace agreement comes at a time when Germany is seeking to “reset” its economic relationship with China. Reports indicate that Germany is currently grappling with a record trade deficit with China, which reached approximately €89 billion ($105 billion) in 2025. Merz noted that this figure has quadrupled since 2020.

During the visit, the Chancellor pressed for “fair, balanced, and reciprocal” trade terms. The purchase of 120 Airbus jets is widely interpreted by analysts as a gesture from Beijing to help narrow this gap and demonstrate that economic engagement remains mutually beneficial.

“The Chinese leadership will be ordering a larger number of additional aircraft from Airbus.”

, Chancellor Friedrich Merz, via press remarks in Beijing

Strategic Context and Market Impact

This announcement reinforces Airbus’s dominant position in the Chinese aviation market, where it held a market share exceeding 50% entering 2026. The European Manufacturers delivered approximately 790 aircraft globally in 2025, outpacing its American rival Boeing. The expansion of Airbus’s local production capabilities, including the second Final Assembly Line (FAL) in Tianjin, has further incentivized local procurement.

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The Geopolitical “Tightrope”

While the headline number of 120 aircraft is a significant industrial win for Europe, we believe the timing of this deal is as political as it is commercial. With global trade tensions rising and the potential for shifts in U.S. trade policy later this spring, Beijing appears to be utilizing “checkbook diplomacy” to secure European neutrality.

By locking in long-term supply chains with Airbus, China mitigates the risk of potential sanctions or tariff wars that could impact Boeing deliveries. For Chancellor Merz, this deal offers a tangible domestic victory, proving that his administration can secure high-value Contracts for European industry even while taking a firmer stance on systemic rivalries and trade imbalances.

Frequently Asked Questions

What is the value of the deal?
While no official contract value was released, industry estimates place the list price value between $15 billion and $16 billion, depending on the final mix of aircraft models.

Are these new orders?
Yes. Chancellor Merz explicitly categorized these as “additional” aircraft, separate from the ~145 orders placed by Chinese airlines in late 2025 and early 2026.

Who are the key figures involved?
The agreement was reached following meetings between German Chancellor Friedrich Merz, Chinese President Xi Jinping, and Chinese Premier Li Qiang.

Sources

• Euronews
• Evelyn Ann-Marie Dom