China has directed its airlines to suspend further delivery of the Boeing aircraft, the decision to impose 145% tariffs on Chinese imports in retaliation for the United States decision, Bloomberg News A report was reported on Tuesday citing sources familiar with the case.
Boeing shares slipped 0.5% in the afternoon trading, as the company faces growing pressure in one of its largest growth markets, where European rival Airbus already maintains a major position.
The Global Aerospace sector is now being drawn deeply into the US-led trade war, re-assuring the contracts of the airlines, planmakers, and suppliers multicibilian-dollars. The move follows recent controversies that have been provoked by the American firm Havmet Aerospace, which should be shoulder to shoulder to the new tariff burden.
The aircraft may leave the delivery in confusion on the changing tariffs, with some airline CEOs said they would avoid delivery of aircraft rather than payment 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 boing aircraft between 2025 and 2027 respectively.
Beijing has also asked that Chinese carriers stop the purchase of aircraft related equipment and some parts from American companies, Bloomberg The report states.
Roots The report is not able to confirm independently.
Two aerospace industry sources told Roots He was not independently alerted by China on American aircraft parts for a blanket ban.
Analysts stated that China would not have a major impact on a short -term stop in delivery, as the planner could redirect those jets to other airlines and because Airbus does not have the ability to supply the country alone.
China will have more difficulty banning the import of new American parts to support its current fleet of the aircraft, including China’s C919.
Bank of America analyst Ron Epstein wrote to customers in a note, “If China stops buying aircraft components from the US, the C919 program has been stopped or dead.”
The Chinese government is considering ways to assist airlines leasing Boeing Jet and facing high cost, Bloomberg News Informed
It was China which grounded 737 Max Jets of Boeing for the first time after two deadly accidents in 2018 and 2019, killing around 350 people. China also suspended most of Jet’s orders and delivery in 2019.
Boeing refused to comment.
The delivery halt for China is another blow to the planner, navigating slow recovery after a challenging year marked by a labor strike, enhancing the disintegration of the regulatory investigation and frequent supply chain.
Beijing’s action follows its decision last week to increase the levy to 125% on US imports against American tariffs, which will increase the cost of Boeing Jet for Chinese carriers and potentially lead airlines to consider options such as Airbus and Domestic Players Comac.
Boeing’s shares have shed over one third of their value since the mid-air door panel blowout on a brand-nine Max 9 jet last year, which triggered a new wave of challenges for the company.
A stagnation for a stagnation to bring goods trade between the two countries, which grows between the two largest economies in the world. The value of that trade was more than $ 650 billion in 2024.
