China orders airlines to stop Boeing jet deliveries
China has ordered its airlines not to take further deliveries of Boeing jets in response to the US decision to impose 145-percent tariffs on Chinese goods, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Shares of Boeing—which considers China one of its biggest growth markets and where rival Airbus holds a dominant position—were down 0.5 percent in midday trading.
The global aerospace industry is being dragged into a US-led trade war, with plane makers, airlines and suppliers reviewing contracts worth billions of dollars, after US supplier Howmet Aerospace ignited debate over who should bear the cost of the tariffs.
Confusion over changing tariffs could leave aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties.
China’s top three airlines—Air China, China Eastern Airlines and China Southern Airlines—had planned to take delivery of 45, 53 and 81 Boeing planes respectively between 2025 and 2027.
Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies, the Bloomberg report said.
Reuters has not been able to independently confirm the report.
Two aerospace industry sources told Reuters they had not been alerted independently to a blanket ban by China on US aircraft parts.
No major impact
Analysts said a short-term halt in deliveries to China would not have a major impact on Boeing, since the plane maker could redirect those jets to other airlines and because Airbus does not have capacity to supply the country alone.
China would have more difficulty banning imports of new US parts to support its existing fleet of aircraft, including China’s C919.
“If China stops buying aircraft components from the US, the C919 program is halted or dead,” wrote Bank of America analyst Ron Epstein in a note to clients.
The Chinese government is considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.
