Beijing
Amid growing trade tension with the US, China has banned delivery of aircraft from American aircraft manufacturer Boeing. China has instructed its airlines not to take new aircraft from Boeing Company nor buy aircraft equipment or parts from the US. The step has been taken by US President Donald Trump’s decision to impose a tariff of up to 145 percent on goods imported from China.
The cost of the parts is more than doubled
In response, China also announced a counter -charge of 125 percent on US products. Due to the new duties, the cost of aircraft imported from the US and their parts has been more than doubled, making it difficult for Chinese airlines to take Boeing aircraft. According to a Bloomberg report, China is now looking for measures to help the airlines who have leased Boeing aircraft and are now facing more expenses on them.
China is a large part of global aircraft market
This situation has become a serious challenge for Boeing, especially when China has become a major part of the global aircraft market. It is estimated that China will hold 20 percent of the global aircraft demand in the coming 20 years. In the year 2018, about 25 percent of the total aircraft sold by Boeing were sent to China. However, in recent years, China has not given any major new order from Boeing due to business tension between the US-China and internal quality issues of Boeing. In 2019, when 737 Max aircraft were grounded after two deadly accidents, China was the first country to take this decision.
China’s inclination towards Airbus SE
During both Trump and Biden, trade differences during administration forced China to extend the inclination towards European aircraft manufacturer Airbus SE. In addition, in early 2024, Boeing suffered another setback when the ‘door plug’ of an aircraft flew (door part) flew during the flight in January, which again raised questions on the quality of the company. This whole incident also makes it clear that even though China has tried to reduce dependence on foreign companies, it is still dependent on companies in countries like America and Europe to meet its growing aviation needs.
The situation remains unstable at the moment and it is possible to change, as President Trump has withdrawn the fees in some cases before – such as the fee levied on Apple’s iPhone coming from China. This trade war is not only affecting the global aviation industry, but is also making a big rift in the economic relations of the two countries.
