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China halts Boeing jet deliveries amid rising US-China trade tensions, report says

by admin April 15, 2025
April 15, 2025
China halts Boeing jet deliveries amid rising US-China trade tensions, report says

In a further escalation to the trade war with the US, China has instructed its airlines to suspend all further deliveries of Boeing aircraft and halt purchases of aircraft-related equipment and parts from US suppliers, Bloomberg reported citing people familiar with the matter.

The directive comes after US President Donald Trump imposed sweeping tariffs of up to 145% on Chinese imports, triggering swift retaliation from Beijing.

The move marks a significant blow for Boeing, whose commercial jet business remains deeply entangled with Chinese demand.

China’s latest retaliatory tariffs, unveiled over the weekend, include a 125% levy on American-made aircraft and parts, effectively doubling their cost and rendering new deliveries financially untenable for Chinese carriers.

Sources in the report said the Chinese government may also consider offering relief to domestic airlines leasing Boeing aircraft who now face sharply increased costs.

However, the overall message is clear: Boeing, once a key beneficiary of China’s aviation boom, is now firmly caught in the crossfire of geopolitical brinkmanship.

Boeing share price fell 2.64% in pre-market hours on Tuesday following the development.

Dozens of Boeing jets in limbo as deliveries stall

Around 10 Boeing 737 Max jets are reportedly awaiting delivery to Chinese airlines, including China Southern Airlines, Air China, and Xiamen Airlines, according to Aviation Flights Group data.

Some of these aircraft are stationed near Boeing’s Seattle plant, while others have reached the company’s Zhoushan finishing center in eastern China.

Industry sources suggest that a few of the planes may still be delivered, depending on whether payment and delivery paperwork were finalized before China’s tariffs took effect on April 12.

Source: Bloomberg

However, approvals are likely to be made on a case-by-case basis, with no guarantees.

Neither the Civil Aviation Administration of China nor Boeing responded to requests for comment. Chinese airlines involved in the pending deliveries also declined to respond.

Adding to Boeing’s woes, Juneyao Airlines recently delayed receipt of a Boeing 787-9 Dreamliner that was scheduled to arrive within weeks, another indication of shifting sentiment among Chinese carriers.

China’s long-term aviation strategy weighs on Boeing’s future

The standoff deepens concerns over Boeing’s long-term position in one of the world’s most critical aviation markets.

China accounts for about 20% of projected global aircraft demand over the next two decades. In 2018, nearly a quarter of Boeing’s deliveries were bound for China.

But recent years have seen a dramatic fall-off in new orders, driven by both geopolitical tensions and internal manufacturing issues.

China was the first country to ground the 737 Max after two fatal crashes in 2018 and 2019.

Trade tensions with both the Biden and Trump administrations further tilted purchasing decisions toward Boeing’s European rival, Airbus.

More recently, Boeing suffered another reputational hit when a door panel blew off a 737 Max mid-flight in January 2024.

Despite efforts to build a more self-sufficient aviation industry, China remains reliant on foreign suppliers for much of its fleet.

Airbus has taken a dominant role in new aircraft supply, while China’s own Comac C919 is still in its early stages of commercial deployment.

Nonetheless, many Chinese airlines operate large Boeing fleets that require continued maintenance and parts support—services that could now be in jeopardy.

The post China halts Boeing jet deliveries amid rising US-China trade tensions, report says appeared first on Invezz

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