- China is calling on its airlines to halt further orders of Boeing jets amid a trade dispute with the United States. Beijing reportedly believes the purchase of Boeing planes is impractical considering the rising costs of aircraft and aircraft-related equipment amid U.S. tariffs against China of up to 145%, and tariffs from Beijing of 125%.
- The move is another setback for Boeing, which has faced issues over the years that have hurt sales.
- China is reportedly expected to make up 20% of global travel over the next two decades.
Full Story
China is ordering its airlines to halt any further orders of Boeing jets as a trade war with United States continues, which recently saw President Donald Trump implement tariffs as high as 145% on Beijing’s goods.
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The news comes in a report from Bloomberg published on Tuesday, April 15, which cites people familiar with the matter on the condition of anonymity.
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What is China doing?
China reportedly told the nation’s carriers to stop purchasing aircraft-related equipment and parts from U.S. companies.
Beijing’s move follows China’s announcement and implementation of 125% retaliatory tariffs on U.S. imports over the weekend of April 11. Sources tell Bloomberg that those levies would have more than doubled the cost of U.S.-made aircraft and parts, making it counterintuitive for Chinese airlines to order more Boeing planes.
Officials with the Chinese Communist Party (CCP) are weighing other options to help airlines that lease Boeing jets, according to Bloomberg.
How did the markets respond to the news?
Shares of Boeing, which views Beijing as one of its biggest potential growth markets, were down 3% in premarket trading on Tuesday. Shares of the company’s rival Airbus were up 1%, according to Reuters.
Boeing’s shares have declined at least 10% this year as of Monday, April 14, according to Bloomberg.
What about finished deals?
The trade dispute between Beijing and Washington has put more pressure on an already struggling airline industry, although roughly 10 Boeing 737 Max jets are preparing to enter Chinese airlines’ fleets. Some of the planes reportedly remain near Boeing’s factory in Seattle, while others are at a finishing facility in eastern China, according to data from Aviation Flights Group’s website.
Bloomberg reports some of the delivery paperwork and payments for an undisclosed number of jets may have been completed before China announced its reciprocal tariffs. Those jets may be permitted to enter China “on a case-by-case basis.”
Boeing reportedly has several finished planes sitting in inventory that were meant for Chinese carriers. The company warns that the trade dispute between Beijing and Washington could harm supply chains already impacted by the COVID-19 pandemic, which were only recently signaling progress in getting back on track.
The Civil Aviation Administration of China did not respond to requests for comments from Bloomberg. Boeing declined to comment on the report as well.
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What other setbacks does this add for Boeing?
For Boeing, the news is another setback in one of the largest global markets for aircraft sales. Beijing is reportedly predicted to make up 20% of the world’s aircraft demand over the next two decades. The company has, however, failed to get a major order in China in recent years due to trade and safety issues raised by several high-profile incidents.
Beijing became the first to ground 737 Max planes in 2019 after a pair of deadly crashes.
There were additional safety concerns surrounding Boeing after a plane’s door flew off mid-flight in January 2024.
Trade disagreements with the Biden and Trump administrations also led China to lean on orders from Europe’s Airbus.
Tags: Airlines, Beijing, Boeing, Boeing 737 MAX, Boeing 747, China, Chinese Communist Party, People’s Republic of China, Plane, plane crash, South China Sea, Tariff, Trade, Travel
[CRAIG NIGRELLI]
CHINA IS ORDERING ITS AIRLINES TO HALT ANY FURTHER ORDERS OF BOEING JETS AS A TRADE WAR WITH THE U-S CONTINUES.
THE ANNOUNCEMENT COMES AS PRESIDENT TRUMP’S ENFORCEMENT OF TARIFFS AS HIGH AS 145 PERCENT ON BEIJING GOODS CONTINUES AND BEIJING’S RECIPROCAL TARIFFS ON AMERICAN GOODS.
THE NEWS COMES IN A REPORT TUESDAY FROM BLOOMBERG, CITING PEOPLE FAMILIAR WITH THE MATTER WHO WISHED TO REMAIN ANONYMOUS.
CHINA ALSO REPORTEDLY DIRECTED THE NATION’S CARRIERS TO STOP PURCHASING AIRCRAFT EQUIPMENT AND PARTS FROM U-S COMPANIES.
BEIJING’S MOVE FOLLOWS ITS ANNOUNCEMENT AND IMPLEMENTATION OF 125 PERCENT RETALIATORY TARIFFS ON U-S IMPORTS OVER THIS PAST WEEKEND.
SOURCES TELL BLOOMBERG, THOSE LEVIES ALONE WOULD HAVE MORE THAN DOUBLED THE COST OF U-S-MADE AIRCRAFTS AND PARTS, MAKING IT ILLOGICAL FOR CHINESE AIRLINES TO ORDER MORE BOEING PLANES.
THE CHINESE GOVERNMENT IS ALSO WEIGHING OPTIONS TO PROVIDE HELP TO AIRLINES LEASING BOEING JETS AND NOW DEALING WITH HIGHER COSTS.
SHARES OF BOEING, WHICH VIEWS CHINA AS ONE OF ITS BIGGEST POTENTIAL GROWTH MARKETS AND WHERE AIRBUS CURRENTLY HOLDS THE UPPER-HAND, WERE DOWN 3 PERCENT IN PREMARKET TRADING TUESDAY, WHILE AIRBUS SHARES WERE UP 1%.
THE TRADE DISPUTE BETWEEN BEIJING AND WASHINGTON IS PUTTING MORE PRESSURE ON AN ALREADY-STRUGGLING INDUSTRY. WHILE ABOUT 10 BOEING 737 MAX JETS ARE REPORTEDLY PREPARING TO JOIN CHINESE AIRLINES FLEETS, SOME REMAIN NEAR BOEING’S FACTORY IN SEATTLE AND OTHERS ARE AT A FINISHING FACILITY IN EASTERN CHINA. SOME FINISHED PLANES ALREADY PURCHASED AND FINISHED MAY BE ALLOWED INTO CHINA ON A “CASE-BY-CASE BASIS.”
BOEING PREVIOUSLY WARNED, A TRADE DISPUTE WITH CHINA COULD HAVE HARMFUL CONSEQUENCES FOR AN AIRLINE INDUSTRY ALREADY STRUGGLING TO DIG OUT OF LAGGING SALES FROM THE COVID-19 PANDEMIC AS TRAVEL SLOWLY TICKS UP GLOBALLY.
IT’S ALSO A BLOW TO BOEING AS CHINA IS FORECASTED TO MAKE UP 20 PERCENT OF THE WORLD’S AIRCRAFT DEMAND OVER THE NEXT TWO DECADES.
BOEING HAS ALSO FAILED TO GET A MAJOR ORDER FROM CHINA IN THE WAKE OF A PAIR OF DEADLY PLANE CRASHES AND HIGH-PROFILE SAFETY ISSUES, INCLUDING A DOOR FLYING OF MID-FLIGHT ON AN ALASKA AIRLINES FLIGHT LAST YEAR.
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Media Landscape
This story is a Media Miss by the right as only 10% of the coverage is from right leaning media. Learn more
Left 60%
Center 30%
Right 10%
Bias Summary
Bias Comparison
Media outlets on the left
framed the Boeing delivery halt as “trade war woes,” emphasizing the negative economic impact with terms like “sinks.”
Media outlets on the right
used strong language like “halts,” portraying China’s actions as aggressive and a threat to American economic interests.
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14 other sources covering this story
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