China has directed its domestic airlines-including major carriers such as Air China, China Eastern Airlines, and China Southern Airlines-to suspend all further deliveries of Boeing aircraft amid an escalating trade conflict that has seen tariffs spike to as high as 145% on certain products, Bloomberg News reported Tuesday.
This move represents a significant blow to Boeing, which relies heavily on China as one of its key growth markets. Boeing shares fell approximately 3% in premarket trading following the announcement, while rival Airbus saw a corresponding 1% gain.
Beijing has also instructed airlines to cease purchasing U.S.-made aircraft parts and related components, a move analysts warn could sharply increase operational and maintenance costs across China's aviation sector.
The affected airlines were initially scheduled to take substantial deliveries of new Boeing aircraft over the next several years, including:
- Air China: 45 aircraft between 2025 and 2027.
- China Eastern Airlines: 53 aircraft over the same period.
- China Southern Airlines: 81 aircraft.
The latest restrictions could significantly affect Boeing's projected revenue streams, already impacted by previous setbacks, including supply-chain disruptions, labor unrest, and enhanced regulatory scrutiny following earlier safety incidents involving the 737 MAX.
China was the first country to ground Boeing's 737 MAX in 2019 after two fatal crashes killed nearly 350 people, and most Chinese carriers have since significantly curtailed or delayed further orders.
The suspension of Boeing deliveries aligns with Beijing's recent decision to increase tariffs on U.S. imports to 125%, a direct response to President Trump's punitive tariffs imposed on Chinese products. The spiraling trade conflict threatens to severely restrict commerce between the world's two largest economies, which accounted for over $650 billion in trade in 2024 alone.
