Air China, the country's flagship state-controlled airline, said it has agreed to buy 20 A320 aircraft from European aerospace group Airbus.
The announcement comes just two weeks after China said it would impose unspecified sanctions on US companies that sell arms to the self-ruled island of Taiwan, which Beijing claims as its part of its territory.
Boeing, Airbus' main rival in the commercial aircraft market, is among the US companies involved in a $6.4bn US arms package for Taiwan proposed by the administration of US president Barack Obama.
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