China refuses to accept Boeing passenger planes, Riyadh Air expresses willingness to purchase, Trump criticizes Beijing's trade policies

Taiwan • Business • 04/28 14:01
China refuses to accept Boeing passenger planes, Riyadh Air expresses willingness to purchase, Trump criticizes Beijing's trade policies

Chinese airlines have refused to accept Boeing planes due to US-China trade tensions, leading Boeing to return some planes to the US and seek resale. Tony Douglas, the CEO of Riyadh Air in Saudi Arabia, stated that if China cancels its order, the company is willing to purchase all the planes that were rejected. This move has drawn criticism from former US President Trump, who directed his criticism towards Beijing, urging Boeing to hold China accountable for breaching the contract and accusing China of not fulfilling its purchase commitments.

Key Updates

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04/28 14:01

China refuses to accept Boeing passenger planes, Riyadh Air expresses willingness to purchase, Trump criticizes Beijing's trade policies

Chinese airlines have refused to accept Boeing planes due to US-China trade tensions, leading Boeing to return some planes to the US and seek resale. Tony Douglas, the CEO of Riyadh Air in Saudi Arabia, stated that if China cancels its order, the company is willing to purchase all the planes that were rejected. This move has drawn criticism from former US President Trump, who directed his criticism towards Beijing, urging Boeing to hold China accountable for breaching the contract and accusing China of not fulfilling its purchase commitments.

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China Refuses to Accept Boeing Aircraft

The relationship between Boeing and the Chinese market has long been seen as an important indicator of Sino-American economic cooperation. However, as the US-China trade war has escalated, Chinese airlines have recently refused to accept Boeing aircraft they originally ordered. According to reports, Boeing has returned the third aircraft originally scheduled for delivery to China back to the United States, and currently, as many as 55 aircraft are left in inventory, most of which were originally manufactured for Chinese and Indian customers.

Boeing CEO Kelly Ortberg confirmed to the media that China has suspended the acceptance of new aircraft, noting that these rejected planes include three 737 MAX models, which were originally completed at the Zhoushan plant, a joint venture between Boeing and COMAC.

This move by China is seen as a response to the US's tariff measures and marks the trade war's expansion from traditional goods to the civil aviation industry.

Boeing Seeks to Resell Stranded Aircraft

Facing the Chinese market blockade, Boeing made a rare public statement during last week's analyst conference call, indicating that it will seek to resell these stranded aircraft. Boeing emphasized that in the current tight aircraft market, buyer demand remains strong, so it is not worried about finding new buyers for these planes.

Boeing's financial situation has been exacerbated by the Chinese market issues. In the fourth quarter of 2024, Boeing recorded a net loss of $11.8 billion, the largest quarterly loss since 2020, and revenue also fell 31% year-on-year to $15.2 billion, far below market expectations.

Riyadh Air Expresses Willingness to Purchase

Against this backdrop, Tony Douglas, CEO of the emerging Saudi Arabian airline Riyadh Air, stated during the Arabian Travel Market conference that if China eventually cancels the orders, Riyadh Air is willing to purchase all the rejected aircraft. He emphasized, "We have made it clear to Boeing that if this happens, and the keyword is 'if,' we would be happy to take all the orders."

Riyadh Air, backed by the Saudi Arabian Public Investment Fund (PIF), has not yet officially operated but has been actively placing orders with Boeing and Airbus. In March 2023, the company ordered up to 72 Boeing 787 Dreamliners and in October of the same year, ordered 60 Airbus A321 narrow-body aircraft.

Douglas pointed out that despite global macroeconomic uncertainties, Riyadh Air has not observed any negative impact on the demand for flights to and from Riyadh, the capital of Saudi Arabia. He also revealed that the company plans to announce new wide-body aircraft orders this summer.

Trump Criticizes Beijing

In response to China's refusal to accept Boeing aircraft, former US President Donald Trump posted on the social platform Truth Social, urging Boeing to "hold China accountable" and criticizing China for not fulfilling its purchase commitments. He wrote, "Boeing should hold China accountable because China has not accepted those beautiful planes that are completed and promised to be purchased by China."

Trump further pointed out that this is just a small example of China's unfair behavior towards the United States over the years. He recalled that during his tenure, China ordered 122 Boeing aircraft between 2017 and 2018, but only placed orders for 28 thereafter, indicating that the issue started before the trade war erupted.

Additionally, Trump accused Beijing of lacking sincerity in trade negotiations and criticized the Chinese government for repeatedly denying any negotiations with the US regarding tariffs recently.

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