China orders its airlines to halt Boeing jet deliveries and US aircraft parts purchases. China is the world's second-largest aviation market.
China-US Tariff War: China has ordered its airlines to stop taking delivery of jets from US company Boeing and to cease purchasing aircraft parts. This move could deliver a significant blow to the United States.
China, the world's second-largest aviation market, has imposed restrictions on Boeing-related trade. Chinese airlines have been instructed not to accept deliveries of Boeing jets. Furthermore, the purchase of related aircraft machinery and parts will also be halted.
Impact of China's Action
The trade war between the US and China has sent shockwaves through the global economy. Trump's tariffs imposed a 145% tariff on China, while China retaliated with a 125% tariff on the US. This could significantly harm Chinese airlines.
Status of Boeing 737 Max and other aircraft
Deliveries of Boeing 737 Max aircraft to Chinese airlines were pending, but China's decision to halt these deliveries could result in substantial economic losses for the US. China Southern Airlines, Air China, and Xiamen Airlines were awaiting delivery of Boeing aircraft.
Boeing supplied 25% of its aircraft to China in 2018, but following several accidents in 2019, the 737 Max was grounded in China.
The Trump administration granted tariff exemptions on electronics such as phones and computers from China and other countries. Despite this, China maintains that the US has made a unilateral decision regarding tariffs.
