Boeing's Boost as China Lifts Ban on Deliveries, Post-Tariff Deal
Boeing aircraft deliveries to China receive approval for resumption.
Swinging the tables a bit! Following the US tariff deal, China green-lit purchases of Boeing aircraft once more, according to reports. This move comes as excellent news for the aircraft manufacturer, offering an instant boost. Approximately 50 Boeing planes are set to grace the skies of China this year as a result.
After a breakthrough in the US trade dispute, sources confirm that Beijing has authorized local airlines and government agencies to resume purchases of US-made aircraft. The news agency Bloomberg claimed that officials in the Chinese capital have conveyed the decision to relevant parties. Notably, the US and China had agreed to a 90-day ceasefire and reduced tariffs.
Boeing remained mute on the report, while the Chinese civil aviation authority was unresponsive to comment requests. China, you see, represents about 10% of Boeing's commercial order book and is a vital, budding market in the aviation industry. Previously, China had granted exemptions for some aircraft parts under tariffs.
Economy
The revival of deliveries not only saves Boeing precious time and resources in finding alternative buyers but also guarantees substantial revenues. China's aviation sector is projected to account for 20% of global aircraft demand over the coming 20 years. Back in 2018, nearly 25% of Boeing's production was snapped up by the Chinese market.
However, trade spats and self-imposed issues have kept Boeing from announcing significant orders in China in recent times. China was the first country to ground the 737 Max following two fatal crashes in 2019. Ongoing trade conflicts with both the Biden and Trump administrations have also shifted Chinese orders towards European competitor Airbus.
Insights (Optional):
In 2025, China imposed a temporary halt on Boeing deliveries in April as a response to US tariffs, causing uncertainty for Boeing's strategic plans. However, on May 12, 2025, China lifted this ban, extended by a 90-day trade truce with the U.S., allowing Boeing to recommence deliveries to Chinese airlines. This move is seen as a positive move in the ongoing easing of trade tensions between the two global giants. [1][3]
Sources: ntv.de, jki/rts
- Boeing
- China
- USA
- Tariffs
- Trade disputes
- The lift on China's ban on Boeing aircraft deliveries, following the US tariff deal, presents a significant opportunity for Boeing in the finance-intensive aerospace industry, given that China accounts for approximately 10% of Boeing's commercial order book and is projected to represent 20% of global aircraft demand over the next 20 years.
- In the midst of revived purchases of US-made aircraft by China, it is crucial for Boeing to contemplate its employment policy, given the industry's dependence on financing and the potential boost in production orders that may arise from such Trade disputes resolutions.
