China has directed its airlines to stop taking delivery of Boeing jets in a retaliatory move amid the escalating trade war with the United States.
According to a Bloomberg report, the move follows recent US tariff hikes under President Donald Trump, who has imposed levies of up to 145% on Chinese imports.
In response, Beijing over the weekend rolled out retaliatory tariffs of 125% on American goods, a step that would more than double the cost of US-made aircraft and parts, making it economically unfeasible for Chinese airlines to continue accepting Boeing planes.
“Beijing has also requested that Chinese carriers halt any purchases of aircraft-related equipment and parts from US companies,” Bloomberg quoted sources familiar with the development.
The Chinese government is said to be exploring support measures for domestic airlines that lease Boeing jets and may now face increased operational costs.
The restrictions have put Boeing in a difficult position, as the fast-evolving dispute between the world’s two largest economies continues to disrupt major industries.
“Trump on Tuesday weighed in to criticize Beijing with a post on his Truth Social network. China ‘just reneged on the big Boeing deal’ signed during his first administration, he said.”
Shares in Boeing dropped as much as 2.5% following the report, and were down 1.2% at 11:13 a.m. in New York. The stock had already fallen 10% since the start of the year.
Aircraft data shows that around ten Boeing 737 Max planes are currently awaiting entry into Chinese airline fleets, including two each for China Southern Airlines Co., Air China Ltd. and Xiamen Airlines Co.
Some of these jets are already in China at Boeing’s Zhoushan finishing centre, while others remain in the US near the company’s Seattle base.
“Delivery paperwork and payment on some of these jets may have been completed before the reciprocal tariffs announced by China on April 11 took effect on April 12, and those planes may be allowed to enter China on a case-by-case basis, some of the people said.”
The Civil Aviation Administration of China has not responded to a request for comment, and neither Boeing nor the affected airlines have issued any public statements.
Last week, Bloomberg reported that Juneyao Airlines Co. had postponed the delivery of a Boeing 787-9 Dreamliner it had been scheduled to receive in the coming weeks.
Analysts have stated that the situation presents a significant challenge for Boeing, which has already been facing pressure in the Chinese market due to ongoing trade tensions and reputational setbacks.
“There is ‘likely some hope that this is temporary and provides China a bargaining chip in any negotiation,’ Jefferies analyst Sheila Kahyaoglu said in a research note.”
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China remains one of Boeing’s most critical markets, expected to account for 20% of global aircraft demand over the next 20 years.
In 2018, nearly a quarter of the company’s output was delivered to Chinese customers. However, no major deals have been announced in recent years, with China increasingly turning to Boeing’s European rival, Airbus.
The American planemaker has also been grappling with quality concerns following a January 2024 incident in which a door plug blew off mid-flight, further compounding its challenges in winning back the Chinese market.
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