Boeing back in China skies as Beijing ends aircraft delivery freeze

China has lifted a month-long ban on domestic airlines receiving Boeing aircraft, following a recent breakthrough in trade negotiations with the United States that has led to a temporary reduction in tariffs on both sides, according to sources familiar with the matter.

Officials in Beijing began informing Chinese carriers and government agencies this week that deliveries of US-made planes, including those from Boeing Co., can now resume, Caliber.Az reports, referring to foreign media.

The sources, who spoke on condition of anonymity due to the sensitivity of the matter, indicated that airlines have been given the discretion to schedule deliveries at their convenience and on their own terms.

The move marks a significant win for Boeing, which had been caught in the crossfire of escalating US-China trade tensions. The resumption of aircraft deliveries is expected to provide an immediate financial and strategic boost to the US aerospace manufacturer.

The development comes in the wake of an agreement between Washington and Beijing to de-escalate trade tensions through a temporary truce. Under the deal, the US will reduce its cumulative tariffs on Chinese imports from 145% to 30% for a 90-day period, while China will cut its retaliatory duties on American goods from 125% to 10%. In addition, Beijing has agreed to lift other countermeasures that have been in place since April 2. However, the truce is temporary, and the renewed aircraft deliveries may be short-lived unless the broader trade dispute is fully resolved during this three-month window.

Boeing became one of the high-profile casualties of the trade war initiated by former President Donald Trump, whose sweeping tariffs prompted Beijing to impose retaliatory duties. The Chinese government had instructed its airlines to halt Boeing deliveries, effectively pricing the US aircraft manufacturer out of one of its most important markets.

Signs of a possible thaw appeared in late April, when China signalled a willingness to resume normal business with US companies. At the time, Beijing announced plans to suspend elevated tariffs on specific American goods, including medical equipment, industrial chemicals, and aircraft leases.

While the lifting of the ban now permits deliveries to proceed, it remains uncertain how quickly Chinese airlines will move to collect the aircraft already produced. Boeing has not commented on the resumption, and the Civil Aviation Administration of China has yet to issue a public response.

Several Boeing jets previously intended for Chinese customers were flown back to the US after being rejected. Boeing had also warned that it would begin marketing those aircraft to other buyers. The availability of undelivered 737 Max jets had already stirred interest among airlines in countries such as India, Malaysia, and Saudi Arabia, all seeking to capitalise on the disruption.

With around 50 Boeing aircraft scheduled for delivery to Chinese customers this year, the resumption spares the company the cost and logistical burden of finding alternative buyers. It also ensures that significant payments will be secured once the planes are officially transferred.

China is expected to account for 20% of global aircraft demand over the next two decades. In 2018, nearly 25% of Boeing’s aircraft output was delivered to China. However, no major orders have been announced from Chinese airlines in recent years, largely due to trade tensions and Boeing’s own operational setbacks.

In 2019, China was the first country to ground Boeing’s 737 Max model after two fatal crashes. Subsequent trade tensions with both the Biden administration and the previous Trump administration further pushed Chinese demand toward Boeing’s European rival, Airbus SE. Compounding its woes, Boeing suffered a fresh quality crisis in January 2024 when a door plug on a 737 Max aircraft blew out mid-flight.

The aerospace giant continues to play a central role in international trade diplomacy. Just last week, the White House announced a new trade agreement with the United Kingdom that included a $10 billion deal for Boeing, featuring the sale of 32 787-10 Dreamliners to British Airways.

By Tamilla Hasanova