China has officially lifted its ban on domestic airlines accepting deliveries of Boeing aircraft following a major trade breakthrough with the United States.
This decision comes after Beijing and Washington agreed to temporarily reduce steep reciprocal tariffs, marking a significant step toward easing tensions between the world’s two largest economies.
According to reports from Bloomberg, Chinese aviation officials have started informing domestic carriers and relevant government agencies that they may now resume the delivery and operation of Boeing-manufactured planes.
Reversal of previous restrictions
This signals a reversal of previous restrictions that prevented Chinese airlines from accepting new aircraft due to tariffs imposed by the Trump administration.
- Boeing had struggled with inventory buildup, as at least three jets returned to the U.S. from its Chinese delivery center after airlines refused to accept them.
- The trade agreement, reached on Monday, stipulates that both China and the United States will cut tariffs by 115% for 90 days while ongoing negotiations continue.
- This temporary arrangement allows both parties to renegotiate broader trade policies, relieving financial burdens on sectors affected by tariffs, including aerospace and aviation.
The deal follows weeks of escalating trade disputes, with Beijing publicly stating that Chinese airlines, along with Boeing, had been severely impacted by tariffs imposed by the U.S. government.
Prior to this latest agreement, China had already granted exemptions on certain aerospace components, including aircraft engines and landing gear, in an effort to mitigate the impact of rising import costs. However, full approval for Boeing aircraft deliveries had remained suspended until now.
China, a major industry leader
China represents a key market for Boeing, accounting for roughly 10% of its commercial aircraft backlog.
- The country’s aviation sector continues to expand, making it an essential destination for new aircraft sales and deliveries. Boeing executives had previously outlined plans during the company’s first-quarter earnings call, stating their intention to deliver 50 jets to Chinese carriers within the year.
- Of these, 41 jets were either in production or pre-built, awaiting clearance from Chinese authorities.
- Despite Boeing’s assurances that other airlines have shown interest in the planes originally built for Chinese customers, the company has been cautious about selling them elsewhere.
- The hesitation stems from logistical challenges such as seating configurations, which were specifically chosen and purchased by Chinese airlines. Customizing and reconfiguring these aircraft for new buyers would delay their resale, adding to Boeing’s inventory concerns.
Now that restrictions have eased, Chinese carriers are expected to accept 25 out of the remaining 30 737 MAX jets built before 2023 that were previously stalled due to trade limitations. In addition, reports from aircraft tracking database Aviation Flights Group reveal that four 777 freighter planes are currently in production for Chinese airlines.
These developments indicate that Boeing is beginning to regain its footing in the Chinese market, benefitting from improved trade relations between the two nations.
What you should know
On Monday, the United States and China reached a temporary trade agreement, announcing a 90-day reduction in tariffs on each other’s imports.
- The move comes after two days of intense negotiations in Geneva, Switzerland, marking the first major breakthrough since tensions escalated under President Donald Trump’s aggressive trade policies.
- Under the revised tariff structure, U.S. tariffs on Chinese imports will drop from 145% to 30% by May 14, including those tied to fentanyl-related trade measures.
The resumption of Boeing aircraft deliveries to China marks a turning point in U.S.-China aviation relations, reflecting broader efforts to normalize trade and investment flows between the countries.
As negotiations continue, industry experts will closely monitor whether this temporary tariff reduction will translate into a long-term resolution, allowing both the aviation and aerospace industries to thrive without political and economic disruptions.
