China orders airlines to halt Boeing deliveries, pause US orders: Bloomberg
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The news: China has ordered airlines to stop taking deliveries of Boeing jets and to halt any purchase of aircraft-related equipment and parts from US companies, according to sources cited by Bloomberg.
The numbers: China responded to US President Donald Trump’s 145% so-called reciprocal tariffs on the weekend, increasing levies on US goods imported into China to 125%. The increase would almost double the cost of US-made aircraft and equipment.
Around 10 Boeing 737 planes are due to enter Chinese airline fleets, including two each for China Southern Airlines Co., Air China Ltd. and Xiamen Airlines Co., according to Aviation Flights Group.
The context: Sources told Bloomberg that some planes which had already completed delivery paperwork may be allowed to enter China on a case-by-case basis. Beijing is reportedly considering measures to assist airlines that already lease Boeing jets and are grappling with steep maintenance and repair costs.
The move will prove a setback for the troubled plane maker, whose 737 jets have gone through a series of groundings following crashes, and a quality assurance crisis after a door flew out mid-flight in early 2024.
China is expected to deliver 20% of global demand for aircraft in the coming two decades, but Boeing has not announced any new orders in the country in years.
The source: Bloomberg
