Bloomberg: China asks aviation industry to stop accepting Boeing planes

Boeing - Photo 1.

An Air China Boeing 737 - Photo: BLOOMBERG

Citing informed sources, Bloomberg News reported on April 15 that China has asked its airlines not to accept any new aircraft deliveries from Boeing, amid the ongoing "tit-for-tat" trade war between Washington and Beijing.

According to anonymous sources, Beijing also asked Chinese airlines to stop all purchases of aircraft-related equipment and spare parts from US companies.

The order comes after China announced retaliatory tariffs of 125% on US goods over the weekend. Washington had earlier announced tariffs of 145% on Beijing goods.

Accordingly, the tariffs that Beijing imposed on US goods have doubled the cost of purchasing US-made aircraft and aircraft parts, making it difficult for Chinese airlines to continue operating Boeing aircraft.

The Chinese government is also considering measures to support airlines that are leasing Boeing planes and are facing increased costs.

Shares of Boeing, the US aircraft maker, fell as much as 4.6% in premarket trading after Bloomberg News reported on China’s move. As of April 14, Boeing shares were down 10% this year.

Bloomberg said the rapidly escalating trade war between the US and China is putting Boeing in a difficult position, although the situation could change at any time. Mr. Trump recently announced tariff exemptions for electronic goods imported into the US, including iPhones imported from China.

About 10 Boeing 737 Max planes are in the pipeline for Chinese airlines, including two each from China Southern Airlines, Air China and Xiamen Airlines, according to data from Aviation Flights Group.

Last week, Bloomberg reported that Juneyao Airlines had delayed the delivery of a Boeing 787-9 Dreamliner that was scheduled for delivery in three weeks.

For Boeing, the restrictions would be another setback for the company in one of the world's biggest aircraft demand markets, China.

In 2018, China was forecast to account for 20% of global aircraft demand over the next two decades. Nearly a quarter of Boeing's production is delivered to the country.

Boeing continues to face difficulties

Boeing has not announced any major orders from China in recent years, due to trade tensions and problems with the quality of its aircraft.

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

In recent times, especially in 2024, the American aircraft manufacturer has been facing many incidents, including a series of incidents related to the quality and safety of the aircraft it produces.