China Halts Boeing Purchases in Response to Trump’s Tariffs
Political
In response to the trade war launched by U.S. President Donald Trump, Beijing has banned the country’s airlines from purchasing Boeing aircraft.
According to Bloomberg on Tuesday, April 15, the Chinese government instructed domestic airlines to stop buying Boeing planes, spare parts, and equipment. The move comes as part of the ongoing trade conflict with the United States.
The directive followed China’s announcement last week of 125% retaliatory tariffs on American goods. Bloomberg reports that these tariffs would nearly double the cost of U.S.-made aircraft and parts, making purchases from Boeing economically unfeasible for Chinese airlines.
Beijing is also exploring ways to support carriers that have leased Boeing planes and are facing rising costs. According to Aviation Flights Group, around ten Boeing 737 Max aircraft are expected to enter Chinese airline fleets soon.
Bloomberg notes that some of these aircraft may still be accepted by Chinese carriers, as their documentation was processed before the tariffs took effect.
The trade war initiated by Donald Trump has dealt a blow to Boeing in one of its largest global markets. Over the next 20 years, China is expected to account for 20% of global demand for passenger aircraft. In 2018, nearly a quarter of Boeing’s output was delivered to the Chinese market.
Boeing has warned that escalating trade tensions could also harm supply chains that have only recently begun to recover from the pandemic.
According to Bloomberg, ongoing disputes with both Trump and Biden administrations have pushed Chinese airlines closer to the European manufacturer Airbus SE. While Airbus remains the key supplier, and Chinese carriers are hoping to expand their fleet with domestically-produced Comac C919, hundreds of Boeing aircraft are still in service and require maintenance, repairs, and spare parts.
The directive followed China’s announcement last week of 125% retaliatory tariffs on American goods. Bloomberg reports that these tariffs would nearly double the cost of U.S.-made aircraft and parts, making purchases from Boeing economically unfeasible for Chinese airlines.
Beijing is also exploring ways to support carriers that have leased Boeing planes and are facing rising costs. According to Aviation Flights Group, around ten Boeing 737 Max aircraft are expected to enter Chinese airline fleets soon.
Bloomberg notes that some of these aircraft may still be accepted by Chinese carriers, as their documentation was processed before the tariffs took effect.
The trade war initiated by Donald Trump has dealt a blow to Boeing in one of its largest global markets. Over the next 20 years, China is expected to account for 20% of global demand for passenger aircraft. In 2018, nearly a quarter of Boeing’s output was delivered to the Chinese market.
Boeing has warned that escalating trade tensions could also harm supply chains that have only recently begun to recover from the pandemic.
According to Bloomberg, ongoing disputes with both Trump and Biden administrations have pushed Chinese airlines closer to the European manufacturer Airbus SE. While Airbus remains the key supplier, and Chinese carriers are hoping to expand their fleet with domestically-produced Comac C919, hundreds of Boeing aircraft are still in service and require maintenance, repairs, and spare parts.
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