Reports have emerged that China, engaged in a trade war with the United States, has ordered its airlines not to accept planes from Boeing. As the increase in tariffs on American imports has become meaningless, it appears that China is seeking countermeasures in other institutional sectors.
On the 15th (local time), Bloomberg News, citing anonymous sources, reported that "China has instructed its airlines not to accept Boeing aircraft anymore as part of its trade war with the United States" and that "Chinese airlines have also been ordered to stop purchasing aircraft-related equipment and parts from American corporations."
This order reportedly followed China's announcement on the 12th to raise the retaliatory tariff on American imports to 125%. Bloomberg noted that "this tariff imposition alone has more than doubled the price of American aircraft and parts, making it virtually impossible for Chinese airlines to accept Boeing aircraft." It is also said that China is considering ways to subsidize the expenses for airlines leasing Boeing aircraft.
According to Aviation Flight Group, China Southern Airlines, Air China, and Xiamen Airlines were each scheduled to receive two Boeing 737 Max aircraft. The total supply from China, including these aircraft, is about 10. A source stated to Bloomberg that "before the tariffs announced by China on the 12th went into effect, the paperwork and payments for some of these aircraft may have been completed, and these aircraft may be permitted to enter China on a case-by-case basis."
China had previously suspended its purchases of Boeing aircraft in 2019 due to crashes involving the Boeing 737 Max in Indonesia and Ethiopia. However, following a summit between then U.S. President Joe Biden and Chinese President Xi Jinping in November 2023, there were reports that China could lift its freeze on Boeing aircraft purchases. As of now, there has been no announcement regarding mass purchases by China, but it appears that some small-scale purchases may have been possible.
China is the world's largest aircraft market. It is projected that 20% of global aircraft demand will come from China over the next 20 years. The intensification of the trade war with the United States is interpreted as an attempt to inflict damage on the U.S. aviation market as well. Bloomberg reported that "Boeing holds a large number of finished goods originally produced for Chinese airlines" and warned that "if the trade conflict intensifies, the supply chain, which was seriously impacted by the pandemic and has only recently shown signs of normalization, could be affected again."