China has instructed its airlines to suspend deliveries of Boeing Co planes, according to a Bloomberg report. This move comes in response to US President Donald Trump’s decision to impose tariffs of up to 145% on Chinese goods, sparking a trade conflict that has put Boeing in a challenging position.
The tariffs imposed by China in retaliation would more than double the cost of US-made aircraft and parts, making it difficult for Chinese airlines to accept Boeing planes. China has also asked its carriers to stop buying aircraft-related equipment and parts from US companies.
This development has significant implications for Boeing, given China’s importance in the global aircraft market.
China is expected to account for 20% of global aircraft demand over the next 20 years. In 2018, almost 25% of Boeing’s aircraft were delivered to China.
However, Boeing has not announced any major new orders from China in recent years, mainly due to trade tensions and internal problems.
The ongoing trade tensions and internal issues have led China to favor Airbus SE, a European manufacturer, over Boeing. Boeing faced additional scrutiny earlier this year after a door plug incident raised concerns about quality.
The situation remains fluid, with President Trump having reversed some tariffs in the past. The future of Boeing’s sales in China remains uncertain, and the company may face significant losses if the trade conflict continues.