Boeing’s set-off will increase the competitiveness of Chinese rivals Airbus and Comac.
China reportedly ordered airlines not to make further delivery of Boeing Jets in response to President Donald Trump’s decision to impose a 145% tariff on Chinese products.
Bloomberg News reported the development on Tuesday, citing people familiar with the issue.
The global aerospace industry is in the midst of a full-scale tariff war, with plan manufacturers, airlines and suppliers reassessing billions of dollars worth of contracts.
China’s top three airlines – China, China, China Eastern Airlines and China Southern Airlines had planned to deliver 45, 53 and 81 Boeing planes between 2025 and 2027, respectively.
Beijing also called for Chinese airlines to stop purchasing aircraft-related equipment and parts from US companies like Boeing, the Bloomberg report said.
China’s move to halt the purchase of aircraft-related components is expected to increase maintenance costs for jets flying domestically.
The Chinese government is also considering ways to lease Boeing jets and provide assistance to airlines facing higher costs, Bloomberg News reported.
Another Blow for Boeing
Investors are wary. The move could open more opportunities for France-based Airbus and China’s Commercial Aircraft Corporation (COMAC), a Chinese domestic aerospace manufacturer. Shares of Airbus, a publicly available company, have risen nearly all points in the news as of 12pm (16:00 GMT) in the US (16:00 GMT), but Boeing shares have exceeded all points.
In Washington, D.C., Trump said Tuesday that China has returned to a major Boeing deal after a news report Tuesday that Beijing ordered airlines not to order further delivery of US airline jets.
“Interestingly, they said they “don’t own” to be completely committed to the aircraft and they made a big Boeing deal,” Trump said in the Social Post of Truth.
Two fatal clashes in 2018 and 2019 led China to ground Boeing’s 737 Max Jets first, killing nearly 350 people. China also halted most orders and delivery of the jet in 2019.
Stopping delivery to China marks yet another set fold for planar manufacturers. It navigates a slow recovery following a difficult year marked by worker strikes, increased regulatory scrutiny and sustained supply chain disruption.
In 2024, the aerospace manufacturer took the centre stage after many high-profile accidents involving planes, including the largest door plug of a 737 that was flew by Alaska Airlines minutes after taking off from Portland, USA on January 4th.