Lifted Ban: Boeing Jets Head to China Once More
China resumes deliveries of Boeing aircrafts.
In the aftermath of a tariff deal between the US and China, China has given its domestic airlines the green light to buy Boeing aircraft again. This move is set to give Boeing a much-needed boost, with around 50 jets predicted to be delivered to China this year.
Officials in Beijing have reportedly begun notifying Chinese airlines and government agencies that American-made aircraft deliveries can recommence. Airlines have the freedom to arrange the deliveries at their own convenience. The US and China previously agreed to a 90-day respite and a substantial drop in tariff rates in their ongoing trade spat.
Boeing has remained tight-lipped on the matter, while the Chinese civil aviation authority has yet to respond to a request for comment. China has been an essential market for Boeing, accounting for about 10% of the company's commercial order book. Prior to the trade tensions, China had even granted tariff exemptions for some aircraft parts.
This move by China is expected to significantly bolster Boeing's sales and revenue, especially considering China's potential to account for 20% of global aircraft demand over the next two decades. In 2018, a quarter of Boeing's production was delivered to China, but due to trade tensions and internal issues, the company hasn't secured any major Chinese orders in recent years.
China was the first nation to ground the 737 Max in 2019 after two deadly crashes. The ongoing trade disputes with both the Biden and first Trump administrations also led to Chinese orders shifting towards European competitor Airbus.
Boeing's Battle for Recovery
The renewal of deliveries to China couldn't come at a better time for Boeing, which has faced significant financial struggles, incurring losses of over $82 billion since 2018. However, the resumption of deliveries may be short-lived if the tariff issues are not resolved during the three-month reprieve. Despite this, Boeing has seen a notable increase in deliveries for April, with 45 commercial jets shipped, almost double the previous year's figure. This uptick in deliveries is crucial for Boeing's financial recovery, as the company heavily relies on payments from delivered aircraft.
- Boeing
- China
- US
- Tariffs
- Trade Disputes
- Boeing's employment policy in the aerospace industry may see a significant improvement as China resumes the purchase of Boeing aircraft, following the tariff deal between the US and China.
- The finance department of Boeing could potentially witness a boost in revenue, influenced by the resumption of deliveries to China, which accounts for a substantial portion of their commercial order book.
