China has lifted a month-long ban on Boeing deliveries following a trade truce with the United States, according to reports.
Officials in Beijing have informed local airlines and agencies that they can start receiving U.S.-made aircraft again. A knowledgeable source indicated this to Bloomberg.
Chinese airlines now have the flexibility to decide when they want to resume deliveries based on their own schedules and conditions, sources noted.
Boeing has not commented on this development yet.
This announcement comes amidst ongoing trade tensions between the two largest economies. Recently, the U.S. has temporarily reduced tariffs on Chinese goods from 145% to 30%, while China has lowered its tariffs from 125% to 10%.
The temporary agreement is projected to last for about 90 days as negotiations continue between the U.S. and China.
Last month, China imposed a 125% tariff on U.S. imports, which essentially pushed Boeing out of the market and stalled all deliveries nationwide.
Aviation analytics firm Cirium reported that the absence of Boeing shipments to China last year was a significant blow, constituting a fifth of Boeing’s total deliveries that year.
Though the ban has been lifted, it’s uncertain how quickly deliveries can resume, especially given that several jets were returned by Chinese customers to the U.S.
Boeing has also cautioned buyers in countries like India, Malaysia, and Saudi Arabia about potential issues with delivery failures.
While it’s evident that Boeing would prefer not to seek new customers, which can be time-consuming and costly, they are still hopeful for around 50 jet deliveries from Chinese clients this year.
In 2018, nearly a quarter of Boeing’s production was dispatched to China. However, in recent years, they haven’t received significant orders from the country due to ongoing trade disputes.
Boeing has faced reputational challenges in recent years as well. China was the first country to resume orders of the 737 Max after the aircraft was grounded following two devastating crashes in 2019.
Earlier this year, another setback occurred when door plugs on a 737 jet blew off mid-flight, further intensifying scrutiny on the company.
Additionally, according to Commerce Secretary Howard Lutnick, the UK is anticipated to place a $10 billion order for Boeing aircraft as part of a customs agreement with the U.S.
