Investing.com -- On the second day of Chinese president Xi Jinping's two-day state visit to Seattle, China agreed to a mutually beneficial cooperative deal with Boeing Company (NYSE:BA) on Wednesday, which includes the purchase of 300 aircrafts valued at approximately $38 billion.
The agreement contains orders and commitments for narrow and widebody Boeing aircrafts that will expand collaboration between the Chinese aircraft industry and the Pacific Northwest airline manufacturer, Boeing said in a statement. As part of the agreement, Boeing will supply 240 airplanes for Chinese airline companies, including 190 737 models and 50 widebody aircrafts. China leasing companies ICBC and CDB leasing will also purchase 60 additional 737s, according to Boeing.
"Boeing airplanes have played an important role in supporting the development of China's aviation transportation for the past 40 years," said Li Hai, president of China Aviation Supplies Holding Company. "These additional airplanes will further help connect the people in China and around the world."
During Xi's visit on Wednesday, the Chinese president viewed final assembly lines for the 787 Dreamliner, 777 and 747-8, as well as aircraft components made by a number of Chinese aviation suppliers. The president also spoke with Boeing employees and the 787 chief pilot regarding their work on airplanes built for Chinese carriers.
"Today's visit by President Xi represents a new chapter in the valuable relationship between Boeing and China," Boeing CEO Dennis Muilenburg said in a statement. "Boeing is committed to further strengthening and deepening our partnership with China in mutually beneficial ways that will bring positive outcomes to Boeing and our Chinese partners."
Boeing also announced on Wednesday that it will partner with the Commercial Aircraft Corporation of China to open a joint venture facility in China for the interior completion, painting and delivery of 737 aircrafts to Chinese customers.
Xi is set to leave for Washington D.C. on Thursday, where he is scheduled to have dinner at the White House with U.S. president Barack Obama, Secretary of State John Kerry and Susan Rice, Obama's National Security Advisor.
Shares in Boeing inched up 0.10 or 0.08% to 131.77 in after-hours trading.