Boeing is making a HUGE mistake by walking away from this deal. Brazil was counting on it, Embraer was counting on it. Now the government doesn't have the money to support its domestic airframer, and Embraer has found itself having a great engineering and manufacturing workforce it can't afford. Boeing has created a desperate situation for Embraer. And nobody can exploit desperation better than the Chinese government. Think African gold, Afghanistan copper, Uzbekistan oil. What China REALLY need now is the know-how of airplane manufacturing and marketing. Embraer has oodles of it, and Brazillian government may have no choice but to sell. Boeing is again pushing a potential ally into the hands of competitors, and making lots of enemies in the process.
If Airbus has any cash left in their coffers, now is a good time to buy Embraer on similar conditions as Bombardier. Only this time, instead of 1 dollar, Brazil may want Airbus to keep the national pride afloat. It will give Airbus absolutely nothing in terms of model range expansion (unless they want to dive into the business jets market) but will eliminate a competitor for their A220 for at least the next decade.