Shares of General Electric (GE) shone a little brighter Tuesday after a report said the industrial giant has won a nod from the federal government to supply engines for China's new passenger jet.
GE's stock price rose 1.87% to $7.36 a share after Reuters reported the Trump administration had granted a license to the Boston-based company to produce engines for China's new COMAC C919 narrow body jet.
Administration officials had been weighing whether to bar GE from inking the deal, but President Trump in February intervened publicly, taking to Twitter to blast proposals that would bar U.S. companies from selling engines and other parts to China's aviation industry, the news service reported.
The approval comes at a time when GE's aviation unit, one of the crown jewels of the company's industrial empire, could use a boost.
GE recently furloughed half of the maintenance, repair and overhaul workers in its aviation division, while cutting in half the salary of the aviation unit's chief, David Joyce.
Analysts at J.P.Morgan have hauled back their revenue estimates for GE's aviation unit to $4.7 billion for 2020 and $5 billion for 2021, down from base revenue of $6.8 billion in 2019.
Work began on China's new passenger jet more than a decade ago, but the plane, a centerpiece of the country's "Made in China 2025," has been hit with a series of delays, according to Reuters.
Under the deal, GE would provide the CFM LEAP-1C engine for the new jet, which is now expected to make its debut next year.
The new Chinese jet is designed to compete with the Boeing 737 MAX and the Airbus 320neo.