China suspends accepting Boeing planes in response to the United States' 125% tariff, which poses a significant challenge for Boeing.

Taiwan • Business • 04/15 08:50
China suspends accepting Boeing planes in response to the United States' 125% tariff, which poses a significant challenge for Boeing.

On April 15, 2025, the Chinese government ordered domestic airlines to suspend the acceptance of Boeing aircraft and stop purchasing related equipment in response to the United States imposing a 125% tariff. This action challenges Boeing in the Chinese market, and China is considering providing assistance to airlines leasing Boeing aircraft to ease cost pressures.

Key Updates

04/15 18:20

In April, New York State manufacturing continued shrinking, with business sentiment hitting its lowest point since 2001.

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Trump's delay in tariff policy sparks a global shipping rush, causing Taiwan's shipping stocks to soar.

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04/15 13:49

CBOE Specialist Warns: Uncertainty in U.S. Tariff Policies Could Trigger Ongoing Market Volatility

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04/15 12:50

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04/15 08:50

China suspends accepting Boeing planes in response to the United States' 125% tariff, which poses a significant challenge for Boeing.

On April 15, 2025, the Chinese government ordered domestic airlines to suspend the acceptance of Boeing aircraft and stop purchasing related equipment in response to the United States imposing a 125% tariff. This action challenges Boeing in the Chinese market, and China is considering providing assistance to airlines leasing Boeing aircraft to ease cost pressures.

04/15 08:21

Temu's withdrawal from US advertising causes a sharp drop in App Store rankings due to US-China tariff policies.

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04/15 04:20

Lin Yongxiang, Chairman of DaJiang Biomedical, is Expanding into the U.S. Market Despite the Trend: Stabilizing Prices and Capturing Orders Amid Taiwan Stock Market Volatility, Global Expansion as a Competitive Edge

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South Korea increases support for strategic industries to 33 trillion won to mitigate risks posed by the US-China trade war.

On April 15, 2025, the South Korean government announced that in response to potential U.S. tariff policies and competitive pressures from China, it will provide an additional 7 trillion won (approximately 4.9 billion USD) to support strategic industries like semiconductors, bringing the total aid to 33 trillion won (approximately 23.1 billion USD). The plan includes infrastructure development, low-interest loans, talent development, and international cooperation, focusing on the semiconductor, display panel, battery, and biotech sectors, with the aim of strengthening South Korea's position in the global high-tech supply chain.

China Orders Suspension of Boeing Deliveries in Response to US High Tariffs

According to reports from Bloomberg and several other media outlets citing informed sources, the Chinese government ordered domestic airlines to suspend receiving Boeing aircraft immediately after China imposed a 125% retaliatory tariff on U.S. goods last weekend. The order covers all undelivered Boeing aircraft and extends to the procurement of aircraft-related parts and equipment.

This policy comes in response to the U.S. government's recent imposition of high tariffs on Chinese industries such as semiconductors and electronics, with some rates reaching as high as 145%. China responded with reciprocal measures, imposing a 125% retaliatory tariff on U.S. imports. Since aircraft and parts fall under the affected goods category, the cost of Boeing products in the Chinese market has significantly increased, making it difficult for airlines to bear.

Affected Fleets and Delivery Status

According to data from Aviation Data Group, about 10 Boeing 737 Max aircraft were originally scheduled for delivery to Chinese airlines, including China Southern Airlines, Air China, and Xiamen Airlines, each having ordered two. Some of these aircraft are still parked at Boeing's factory base in Seattle, USA, while others have already arrived at the finishing center in Zhoushan, China.

The report indicates that delivery documents and payment procedures for some aircraft may have been completed before the tariffs took effect on April 12, and these aircraft may be "individually processed" and allowed into the Chinese market. Shanghai's Juneyao Airlines has proactively delayed receiving a Boeing 787-9 wide-body aircraft in response to policy changes.

China Considers Assisting Leasing Companies to Alleviate Cost Pressure

Since a significant proportion of Boeing aircraft in Chinese airlines are acquired through leasing, the new tariff policy will substantially increase leasing costs. To address these challenges, the Chinese government is studying support plans that may provide financial assistance to airlines leasing Boeing aircraft to alleviate their operational pressure.

No specific assistance details have been announced yet, but several media outlets suggest that the policy may include tax reductions, subsidies, or other forms of financial support. This move indicates that the Chinese government is also considering the actual operational needs of domestic enterprises in its trade countermeasures.

Boeing's Position and Challenges in the Chinese Market

Although Europe's Airbus is the main supplier in the Chinese aviation market, Boeing still holds a significant position in China. According to previous data, nearly a quarter of Boeing's aircraft deliveries came from the Chinese market. Hundreds of Boeing aircraft are still in service in Chinese airline fleets, requiring ongoing maintenance and parts replacement.

Additionally, China is actively promoting the development of domestic aircraft, with the C919 narrow-body aircraft from COMAC (Commercial Aircraft Corporation of China) beginning deliveries, providing an alternative to Boeing and Airbus. However, the C919 is still in the early stages of mass production and cannot yet fully replace Boeing's role in the Chinese market.

Boeing's Inventory Pressure and Supply Chain Risks

Boeing currently has a large inventory of finished aircraft originally intended for delivery to Chinese airlines. With deliveries halted, the future of these aircraft has become a major concern. Boeing has warned that escalating trade disputes could further impact its supply chain, especially in the production and logistics systems that have just recovered post-pandemic.

Boeing has not yet officially responded to China's order. The Civil Aviation Administration of China and several airlines have also not commented on the media reports.

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