Boeing Resumes Aircraft Deliveries to China as Tariff War Eases

Boeing has resumed aircraft deliveries to China, marking a significant step forward following a suspension in April due to escalating trade tensions between the U.S. and China. The resumption follows a temporary easing of tariffs and successful trade negotiations, where both countries agreed on a framework addressing tariff issues.

On June 9, a Boeing 737 MAX aircraft, painted in the livery of Xiamen Airlines, landed at Boeing’s Zhoushan completion center near Shanghai. This delivery was the first since the halt in April, which had been prompted by the imposition of steep tariffs by both nations. The aircraft’s journey from Seattle included refueling stops in Hawaii and Guam, highlighting the logistical complexities involved in international aircraft deliveries.

The resumption of deliveries is a positive development for Boeing, as China represents approximately 10% of the company’s commercial aircraft order backlog. The Chinese aviation market is expected to continue its growth, making it a crucial region for Boeing’s global operations.

In addition to the 737 MAX delivery, Boeing has also supplied a new 787-9 Dreamliner to Juneyao Airlines, further signaling the company’s return to the Chinese market. These deliveries come after a period of uncertainty, during which Boeing had considered reselling aircraft originally intended for Chinese customers due to the halted deliveries.

The easing of trade tensions between the U.S. and China, as evidenced by the temporary rollback of tariffs, has facilitated the resumption of these deliveries. However, it remains to be seen how quickly Chinese airlines will be able to receive the planes they need, as some previously ordered aircraft were returned to the U.S. during the trade dispute.

Boeing’s ability to navigate these geopolitical challenges and resume deliveries to China underscores the company’s resilience and the importance of international markets to its business strategy.