China removes ban on Boeing deliveries after US trade truce
The prospect of newly available Boeing 737 Max jets sparked open interest from India to Malaysia and Saudi Arabia. (EPA Images pic)
BEIJING : China has removed a month-long ban on airlines taking delivery of Boeing Co planes, according to people familiar with the matter, following a breakthrough in trade talks with the US that temporarily slashed tariffs on each side.
Officials in Beijing have started to tell domestic carriers and government agencies this week that deliveries of US-made aircraft can resume, the people said, asking not to identified because the information is confidential.
Discretion has been given for airlines to organise delivery on their own timing and terms, one of the people added.
The resumption of deliveries to China will be an immediate boost to Boeing.
The thawing comes as the world's two biggest economies agreed to a tariff truce, with the US lowering its combined 145% levies on most Chinese imports to 30% for 90 days.
China agreed to slash its 125% duties on US goods to 10%, and remove other countermeasures taken against the US since April 2.
Still, the restoration of jet deliveries could be short-lived if the tariff war isn't resolved during the three-month reprieve.
Boeing had found itself caught in the middle of the trade spat after president Donald Trump's unveiling of tariffs on most major trading partners was met with retaliatory duties from China.
That priced Boeing jets out of the market for Chinese carriers, while Beijing ordered airlines to stop taking deliveries of the company's aircraft.
Signs of a potential detente emerged in late April, when China said it was willing to support normal cooperation with US companies.
Beijing had offered to suspend higher duties on some US imports, including medical equipment, some industrial chemicals and plane leases.
While the lifting of the ban clears the way for deliveries to restart, it's unclear how soon China's carriers can get the planes they need.
A spokesman for Boeing declined to comment, while the Civil Aviation Administration of China didn't immediately respond to a request for comment.
A handful of jets had been flown back to the US after being refused by Chinese customers.
Meanwhile, Boeing had warned it was prepared to find alternative buyers for China-bound aircraft that were yet to be delivered.
The prospect of newly available 737 Max jets sparked open interest from India to Malaysia and Saudi Arabia as airlines sought ways to take advantage of the situation.
With around 50 Boeing jets to be delivered to China this year, it saves the planemaker the time and cost of finding new buyers, and also guarantees it substantial payments once the planes are in the hands of airline customers.
China is forecast to make up 20% of global aircraft demand over the next two decades.
In 2018, nearly a quarter of Boeing's output ended up there. However, the US planemaker hasn't announced a major order in China in recent years due to trade tensions and self-inflicted issues.
In 2019, China became the first nation to ground the 737 Max following two deadly crashes.
Trade disputes with the Biden and first Trump administrations also helped tilt Chinese orders toward Europe's Airbus SE.
Then in 2024, Boeing suffered a quality crisis when a door plug blew out mid-flight in January.
Boeing's role in trade is becoming increasingly political. The White House announced a UK trade pact last week, including a US$10 billion plane deal for Boeing involving the sale of 32 787-10 Dreamliners to British Airways.
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