CNBC host Jim Cramer suggested on Monday that a weaker-than-expected aircraft order from Beijing may be a symptom of a faltering Chinese economy, days after the announcement of an anticipated deal for Boeing Co. (NYSE:BA) that fell significantly short of Wall Street’s expectations.
Cramer Questions China's Plane Buying Power
In a post on X, Cramer wrote, “The Chinese economy is so weak maybe they can’t afford to buy more planes…” Cramer's remarks followed an announcement by President Donald Trump last week that Chinese President Xi Jinping had agreed to purchase 200 Boeing jets.
While the agreement marks Boeing’s first major order from China since 2017, ending a nearly decade-long freeze exacerbated by trade tensions, the volume fell drastically short of expectations. Industry analysts had anticipated a sweeping package of up to 500 aircraft to help modernize China's commercial fleets.
Smaller Boeing Order Fuels Debate
Shaun Rein, founder of the China Market Research Group, countered that the smaller Boeing order does not reflect an inability to pay, but rather a calculated geopolitical pivot.
While navigating headwinds in the property sector, China’s economy remains resilient, posting 5% GDP growth in the first quarter of 2026, with full-year estimates hovering around 4.8%. Rein highlighted that Chinese carriers have ample capital for expansion, having ordered roughly 390 jets from European rival Airbus SE (OTC:EADSY) since late 2025, pushing Airbus’s market share in the country to roughly 55%.
Furthermore, Beijing’s deliberate slowdown in buying from American aerospace companies aligns with a broader strategic shift to reduce reliance on the West and bolster its own domestic industries, namely state-owned manufacturer COMAC and its homegrown C919 passenger jet.
Boeing CEO Signals More Orders Ahead
Cramer notably reacted to the market pullback last Thursday as a buying opportunity, stating on X that the company looked "very good down ten" following its $10-per-share intraday decline. He followed up by writing, “thinking about how stupid it was that Boeing’s stock sold off on China. Boeing is a delivery story, NOT a China story.” Cramer emphasized that the aerospace giant already has “many more orders than they can handle now,” minimizing the impact of a smaller-than-expected order from Beijing.
Boeing CEO Kelly Ortberg, who joined Trump’s delegation to Beijing, in a statement shared with AFP confirming the order, said the deal included an “initial commitment for 200 aircraft,” adding that “further commitments will follow after this initial tranche.”
Boeing is expected to report second-quarter 2026 results on July 28. Its first-quarter revenue rose 14% to $22.2 billion, while its core loss narrowed to 20 cents per share as commercial deliveries improved and 737 production stabilized at 42 jets per month.
Benzinga's Edge Rankings place Boeing stock in the 44th percentile for momentum and the 26th percentile for value, reflecting its mixed performance in both areas. The stock offers a favorable Price Trend in the ‘Short' and ‘Long' term.
Login to comment