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China lifts ban on Boeing jet deliveries after trade thaw with US: report

by May 13, 2025
by May 13, 2025

China has quietly lifted a month-long ban on airlines taking delivery of Boeing Co. aircraft, Bloomberg reported on Tuesday citing people familiar with the matter, in what marks one of the first tangible signs of progress following a temporary de-escalation in trade tensions with the United States.

According to sources in the report who declined to be named due to the sensitive nature of the matter, Chinese authorities have informed domestic airlines and relevant government agencies that deliveries of US-made planes can now proceed.

Carriers have been granted flexibility to manage the timing and logistics of these handovers, which had been suspended amid escalating tariffs.

The move offers a shot in the arm for Boeing, which has been grappling with the dual challenges of supply chain disruptions and reputational damage.

The company had become an unexpected casualty in the broader US-China trade dispute, with Beijing retaliating against Trump-era tariffs by halting the acceptance of its jets and imposing steep duties on American aircraft.

Relief could be short-lived if both sides don’t reach a final deal within 90 days

The latest breakthrough comes as part of a broader trade truce between the two largest economies.

The United States has agreed to lower its average tariff rate on Chinese imports from 145% to 30% for a 90-day period.

In response, Beijing cut its own duties on US goods to 10% and dropped additional measures imposed since April 2024.

However, industry insiders caution that the lifting of the delivery ban could prove short-lived if the two sides fail to reach a more durable agreement within the three-month window.

“While deliveries can resume, the longer-term outlook depends on sustained diplomatic and commercial engagement,” one source said.

The Civil Aviation Administration of China and Boeing declined to comment on the latest developments.

Boeing spared cost of rerouting inventory

The reinstatement of deliveries comes as a relief for Boeing, which had begun making contingency plans to find alternate buyers for aircraft originally earmarked for Chinese customers.

Several jets had already been flown back to the US, while interest in the freed-up inventory emerged from carriers in India, Malaysia, and Saudi Arabia.

With approximately 50 aircraft slated for delivery to China this year, the move will spare Boeing the logistical complexity and financial hit of reassigning the planes.

It also unlocks significant payments once the deliveries are completed, helping the company stabilise its balance sheet.

China’s demand remains critical for Boeing despite turbulence

Despite recent setbacks, China remains a critical market for Boeing.

The country is expected to account for 20% of global aircraft demand over the next two decades.

In 2018, nearly one in four Boeing aircraft were delivered to Chinese carriers.

But the company’s presence in China has weakened in recent years, both due to political friction and internal missteps.

China was the first country to ground Boeing’s 737 Max after two fatal crashes, and trade tensions under both the Trump and Biden administrations steered large orders toward rival Airbus.

A separate crisis in January 2024, involving a mid-flight blowout of a door plug, further dented confidence.

Still, Boeing remains a central player in trade diplomacy.

Just last week, the White House announced a UK trade agreement that includes a $10 billion order for 32 Dreamliners destined for British Airways—underlining the growing role of aviation in high-level negotiations.

The post China lifts ban on Boeing jet deliveries after trade thaw with US: report appeared first on Invezz

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