Donald Trump has touted 'fantastic trade deals' on his return from China, but so far it appears the President has flown home largely empty handed. A large order for Boeing jets had been agreed, Trump told reporters on Air Force One, touting '200 planes and a promise of up to 750 if they do a good job.' But Beijing has not confirmed the purchase.
Boeing and Nvidia Face Uncertain Outcomes
Investors had expected a 500-jet deal, and Boeing's stock dropped 4.7 percent Thursday, extending losses another 2.8 percent Friday. The American jet-maker is competing with European rival, Airbus, which has outstanding orders for 500 planes from Chinese customers, and has opened a factory in Tianjin.
AI chip-maker Nvidia was another major US company hoping to make inroads, with CEO Jensen Huang joining Trump on the China visit. Washington approved Nvidia's cutting-edge H200 chips for shipment to China but Beijing has not formally accepted any shipments. US Trade Representative Jamieson Greer admitted that semiconductor export controls were not a big talking point during the Xi-Trump summit.
Nvidia Chief Returns Without a Deal
For all the optics of Huang's presence on the trip, the Nvidia chief returned without a deal. Trump told reporters on Air Force One that China hadn't bought any 'because they chose not to. They want to try and develop their own.' Nvidia's stock slumped 2 percent Friday amid a broader sell-off in the semiconductor industry, with Intel and Advanced Micro Devices down 6 percent and 4 percent, respectively.
'They're very committed to domestic production,' Greer told Bloomberg, noting that China was conscious of America's tech sector dominance. 'If we're ahead of the game, like we are on AI chips, sometimes they feel that that can stop their own growth. Obviously, we think it can be helpful to them in the long run, but they'll just have to make their decision on that.'
Agricultural and Tariff Agreements
China is expected to agree to buy $10 billion in American agricultural products, Greer said, adding to an existing three-year deal to buy 25 million metric tons of soybeans annually. He said that the US and China agreed to establish a 'Board of Trade' to slash tariffs on around $30 billion worth of goods. What concessions had been offered to China in return for the deals, US officials did not say. Greer said the two sides agreed to 'a certain level of tariff' but declined to elaborate.
