While the trade war with the USA continues, it is alleged that China has instructed the country’s airline companies not to receive more aircraft deliveries from Boeing.

A retaliation from China to the 145% tariff imposed by US President Donald Trump on Chinese products is claimed to have taken place. According to a news report by Bloomberg based on sources familiar with the matter, China has reportedly given instructions to its airline companies to not receive more aircraft deliveries from aviation giant Boeing.

BOEING SHARES DECLINE, COMPETITOR RISES

Seen as one of Boeing’s largest markets, China, the news caused Boeing’s shares to decline by 3%. Meanwhile, shares of another aviation giant dominating the Chinese market, Airbus, rose by 1%. Boeing was founded in the USA in 1916, while Airbus was established in France in 1970.

DELIVERY OF ALMOST 200 AIRCRAFT EXPECTED WITHIN 2 YEARS

The three largest Chinese airline companies, Air China, China Eastern Airlines, and China Southern Airlines, were planning to receive 45, 53, and 81 Boeing aircraft respectively between 2025-2027. Reportedly, the Beijing administration also instructed companies not to purchase aircraft parts or equipment from American companies, which is expected to increase the maintenance costs of aircraft in the country.

It is alleged that the Chinese government is also considering ways to assist airlines leasing Boeing aircraft and facing higher costs. Following the crashes involving Boeing’s 737 MAX aircraft in 2018 and 2019 that resulted in the deaths of nearly 350 people, China became the first country to ground these aircraft. In 2019, China also suspended orders and deliveries for these aircraft.