Due to trade tensions, China's airlines have suspended receiving Boeing 737 MAX aircraft, with several planes returning to the United States.

Taiwan • Business • 04/18 11:07
Due to trade tensions, China's airlines have suspended receiving Boeing 737 MAX aircraft, with several planes returning to the United States.

Chinese airline companies have suspended the receipt of Boeing 737 MAX aircraft due to the new round of U.S. tariff policies. At least one aircraft, which was originally scheduled for delivery to Xiamen Airlines, has been returned to Seattle from Zhoushan, Zhejiang. This action is linked to the rising trade tensions between the U.S. and China, as China has reportedly asked domestic airlines to suspend the purchase of American aircraft and components as a countermeasure. Consequently, Boeing's delivery process to China is encountering significant hurdles.

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04/19 11:06

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04/18 11:07

Due to trade tensions, China's airlines have suspended receiving Boeing 737 MAX aircraft, with several planes returning to the United States.

Chinese airline companies have suspended the receipt of Boeing 737 MAX aircraft due to the new round of U.S. tariff policies. At least one aircraft, which was originally scheduled for delivery to Xiamen Airlines, has been returned to Seattle from Zhoushan, Zhejiang. This action is linked to the rising trade tensions between the U.S. and China, as China has reportedly asked domestic airlines to suspend the purchase of American aircraft and components as a countermeasure. Consequently, Boeing's delivery process to China is encountering significant hurdles.

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Apple CEO Tim Cook successfully secured tariff exemptions from the U.S. government for electronic products, helping ease U.S.-China trade tensions.

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Boeing's New Aircraft Returns to the US, Delivery Process Interrupted

On April 18, 2025, according to reports from Flightradar24 and multiple media outlets, a Boeing 737 MAX aircraft took off from Zhoushan, Zhejiang, China, and was expected to return to Seattle, USA, after a stopover in Guam. The aircraft was originally scheduled to be delivered to Xiamen Airlines, a subsidiary of China Southern Airlines, and had completed interior and painting work. This aircraft is one of four 737 MAX planes recently arrived in Zhoushan, with the other three arriving from Seattle in March and the last one arriving in early April.

According to the aviation professional publication "The Air Current," three of these four aircraft have been marked as "not for delivery," indicating that Boeing is preparing to return them to the United States. Boeing declined to comment on this, but several industry insiders pointed out that this move is closely related to recent changes in US-China trade policies.

China Suspected of Initiating "Rejection Action"

Reuters and Bloomberg, citing informed sources, reported that Beijing authorities have instructed Chinese airlines to suspend the acceptance of Boeing aircraft and halt purchases of aircraft-related equipment and components from US companies. Although there is currently no official announcement or statement, multiple sources indicate that this "rejection action" is already being implemented.

A senior aviation industry insider revealed that Boeing and its suppliers have assumed that they will not be able to deliver aircraft to China in the short term and have begun to formulate contingency plans. Additionally, reports indicate that at least one Chinese airline has canceled a planned Boeing aircraft leasing agreement.

Trade Policy Background: Trump's "Reciprocal Tariffs" Trigger a Chain Reaction

The background to this delivery interruption event is the new round of "reciprocal tariffs" policy announced by US President Trump on April 2, 2025. This policy imposes tariffs on imported goods from multiple countries, including Chinese-made products, causing a strong backlash from China. As a countermeasure, China is suspected of using informal means to restrict the import of US aircraft, with Boeing being one of the first companies affected.

The Zhoushan Completion and Delivery Center is a facility established by Boeing in China in 2018, specifically responsible for completing interior and painting work for Chinese customers. The establishment of this center was originally an important symbol of Boeing's deepening cooperation with the Chinese market, but it has now become the frontline of trade friction.

Involved Aircraft Models and Airlines

The aircraft model involved in this incident is the Boeing 737 MAX, Boeing's best-selling single-aisle model, mainly used for short- to medium-haul routes. According to aviation observation websites and media reports, the returning aircraft is bearing Xiamen Airlines livery, a subsidiary of China Southern Airlines. Xiamen Airlines has not commented on this incident.

The Boeing 737 MAX was grounded globally in 2019 due to two fatal crashes and gradually resumed deliveries in 2021. The Civil Aviation Administration of China approved the model's return to service at the end of 2022, but delivery progress has been slow. According to statistics, from 2020 to March 2025, Boeing delivered only 109 aircraft to China, far below the 668 delivered between 2015 and 2020.

Changes in Boeing's Relationship with the Chinese Market

China has long been a crucial market for Boeing, with about a quarter of Boeing aircraft delivered to Chinese airlines in the past. However, with the combined impact of the 737 MAX crisis, the COVID-19 pandemic, and US-China trade friction, Boeing's market share in China has been declining annually.

Additionally, China is actively promoting the development of its domestic aviation industry, with the domestically produced narrow-body aircraft COMAC C919 already being delivered and seen as a potential competitor to Boeing and Airbus. This background also provides China with more flexibility to adjust its external procurement strategy.

References

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