After Recent US Tariff Deal, China Resumes Boeing Aircraft Purchases
China resumes Boeing aircraft deliveries following previous ban.
Embrace the news as China puts its foot down in the US-China trade dispute, lifting the ban on Boeing aircraft deliveries! According to reports, China's airlines are now free to purchase Boeing planes once again. Expect around 50 jets to reach Chinese skies this year, offering an immediate advantage to the aviation juggernaut.
After the initial agreement in the US-China trade war, sources close to the matter revealed that Chinese officials have begun informing domestic airlines and government agencies that the purchases of US-made aircraft are back on the table. While Boeing kept mum on the revelation, China's civil aviation authority, too, has yet to comment on the matter.
With the US and China opting for a 90-day truce and significantly lower tariffs, China's decision to resume Boeing deliveries comes as no surprise. The boom in Chinese aviation market makes it a vital player on Boeing's commercial order book, accounting for close to 10% of the deals. In previous years, China enjoyed tariff exemptions for some aircraft parts.
Looking ahead, experts expect China to account for 20% of global aircraft demand over the next two decades. As you might recall, 2018 saw nearly a quarter of Boeing's production winging its way to China. Despite trade tensions and self-inflicted difficulties, Boeing has yet to announce any major orders from China in recent years.
Trade spats with both the Biden and Trump administrations, coupled with China's grounding of the 737 Max following two fatal crashes, have diverted Chinese orders towards European competitor Airbus. So, here's to hope that China continues to pump up Boeing's sales, restoring some stability to the turbulent waters of global trade!
Sources: ntv.de, jki/rts; 1, 2, 3, 4
- Boeing
- China
- USA
- Tariffs
- Trade disputes
The resumption of Boeing aircraft purchases by China is a significant move following the US tariff deal, impacting the aviation industry and potential employment policies within China's airlines. Given China's growing demand for aircraft and its substantial role in Boeing's commercial orders, this decision may influence finance and employment prospects across the global aerospace sector.
