Victor EzejaChina has reportedly instructed its airlines to suspend taking further deliveries of Boeing jets.
Beijing has also requested that Chinese carriers cease all purchases of aircraft-related equipment and parts from U.S. companies, according to a report by Bloomberg.
Join our WhatsApp ChannelThe decision appears linked to ongoing U.S.-China trade disputes, including U.S. restrictions on technology exports to China and tariffs on Chinese goods.
The U.S. President, Donald Trump, recently imposed tariffs of up to 145% on Chinese imports.
China responded by imposing a 125% retaliatory tariff on American goods over the weekend.
Impact on Boeing
Boeing, a major U.S. exporter, has often been caught in the crossfire.
China is one of Boeing’s largest markets, and the suspension could further strain the company’s finances, which have already been affected by the 737 MAX crisis and pandemic-related travel declines.
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There are indications that China may increasingly favour Airbus (Europe-based) or its domestically developed COMAC C919 jet, reducing reliance on U.S. aerospace products.
According to a Bloomberg report, shares of the US aircraft manufacturer fell by approximately 4.6% in premarket trading. Boeing stock has dropped 10% this year.
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Trump has reversed certain US tariffs, including those placed on Apple Inc. iPhones imported from China.
Beijing has previously used aircraft orders as bargaining chips in trade negotiations, suggesting this could be a pressure tactic in broader talks with Washington.
Broader Implications
Aviation Industry Shifts: If prolonged, this could accelerate the decoupling of U.S. and Chinese aviation markets.
Global Supply Chain Effects: Boeing’s suppliers and partners worldwide may face disruptions if Chinese orders decline.
Diplomatic Strain: The move underscores deepening U.S.-China tensions, with trade and technology remaining key battlegrounds.
What’s Next?
Observers say U.S. government or Boeing responses may include potential lobbying for policy adjustments.
If the halt persists, Boeing may need to seek alternative markets to offset lost Chinese demand.
The situation could influence upcoming trade negotiations between Washington and Beijing.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
