The Chinese government has told Chinese airlines to halt deliveries and purchases of Boeing jets and aeroplane parts made by US companies in the latest action in what has become a frenetic trade war between Washington and Beijing.
The order came after Juneyao Airlines decided to delay receiving a Boeing 787-9 plane, and President Xi Jinping announced 125% tariffs on US goods. Both of these actions were in response to US President Trump’s 145% levies on Chinese goods entering the US.
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Bloomberg first reported the stay on Boeing deliveries, citing sources close to discussions.
While the news only adds to Boeing’s woes – it has slipped behind European rival Airbus in the APAC region in recent years – the decision could be another to change quickly depending on the mood of the White House. Trump has already reversed (and then denied reversing) charges on smartphones, often assembled in China before being sold in the US.
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At least 10 Boeing 737-MAX jets were expected to be delivered to major Chinese airlines, including China Southern Airlines, Air China and Xiamen Airlines.
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By GlobalDataChina’s growing market
China has been a key strategic sales arena for Boeing for several years. In its 2024 Commercial Market Outlook, the Seattle-based manufacturer identified a likely doubling in both passenger and freight operations in the country by 2040.
According to Boeing’s research, China is expected to boast the world’s largest aviation traffic flow inside the next 20 years.
Darren Hulst, Boeing’s vice president of commercial marketing, said at the time: “China’s commercial aviation market for passengers and cargo continues to expand, driven by economic growth and airlines building their in-country networks.”
Boeing said it expected China to require 8,830 aircraft deliveries by 2043, and would have hoped to benefit from a significant slice of that market before President Trump launched his tariff war.
Beijing’s reaction could be seen as a vote of confidence in its burgeoning domestic manufacturing market.
COMAC’s C-919 passenger aeroplane has been ordered and/or received by several major Chinese airlines, including China Eastern, Air China and China Southern Airlines. In August last year, it claimed to have an orderbook of at least 1,000 planes.
Although the C-919 is currently only certified to fly in China and certain other Asian nations, it is on a trajectory for European approval.
Globally, Boeing delivered 130 commercial jets in Q1.
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