China has instructed its airlines to suspend further deliveries of Boeing aircraft and to stop purchasing U.S.-made aircraft components, said a report from Bloomberg. This decision follows the United States’ imposition of 145% tariffs on Chinese goods. The move affects major Chinese carriers, including Air China, China Eastern Airlines, and China Southern Airlines, which had planned to receive a combined total of 179 Boeing planes between 2025 and 2027.
The Chinese government is also considering measures to assist airlines that lease Boeing jets and are now facing increased costs due to the new tariffs. The halt in deliveries is expected to raise maintenance expenses for existing Boeing aircraft operating within China.
Impact on Boeing and Global Trade
Boeing, which regards China as a key market, has seen its shares decline by 3% following the announcement. The company has not provided an official comment on the matter. Analysts suggest that while Boeing might redirect some aircraft to other customers, the halt in Chinese deliveries presents a challenge, especially given the company’s recent struggles with safety issues and supply chain disruptions.
The escalating tariffs between the U.S. and China, valued at over $650 billion in trade in 2024, risk bringing bilateral trade to a standstill. China’s recent increase in tariffs on U.S. imports to 125% further complicates the situation, making Boeing jets more expensive for Chinese carriers and potentially leading them to consider alternatives like Airbus and domestic manufacturer COMAC.
Historical Context and Future Outlook
China was the first country to ground Boeing’s 737 MAX jets after two fatal crashes in 2018 and 2019. Since then, the country has suspended most orders and deliveries of the jet. While there had been some progress in resuming deliveries, including the arrival of a 737 MAX in China earlier this year, the current trade tensions have once again disrupted the process.
The Chinese government’s directive to halt purchases of U.S. aircraft parts could also impact the maintenance and operation of existing fleets, including China’s domestically produced C919 aircraft, which relies on U.S. components. Analysts warn that stopping the import of these parts could hinder the C919 program’s progress.
According to Bloomberg, the ongoing trade dispute between the U.S. and China has led to a suspension of Boeing aircraft deliveries to Chinese airlines, affecting future fleet expansions and raising concerns about the maintenance of existing aircraft. The situation continues to evolve as both countries navigate the complexities of international trade and economic relations.
