China Orders Airlines to Halt Boeing Deliveries Amid Escalating Trade Tensions​

China has directed its domestic airlines to suspend deliveries of Boeing aircraft and cease purchasing U.S.-made aviation parts, intensifying the ongoing trade dispute between Beijing and Washington. This move follows the U.S. government's recent imposition of a 145% tariff on Chinese imports, prompting China to retaliate with a 125% tariff on American goods.​

The directive affects major Chinese carriers, including Air China, China Eastern, and China Southern, which collectively had plans to receive 179 Boeing planes between 2025 and 2027. Approximately ten Boeing 737 Max aircraft slated for Chinese airlines are now in limbo.​

Boeing, which had projected delivering nearly 9,000 jets to China over the next two decades—accounting for about 20% of its global forecast—faces significant financial repercussions. Analysts estimate that the suspension could reduce Boeing’s 2025 cash flow by approximately $1.2 billion. Following the announcement, Boeing's stock declined by up to 3% and is now down 12% for the year.

In addition to halting Boeing deliveries, China has placed Boeing Defense, Space & Security on its "Unreliable Entity List," effectively banning the company from import and export activities related to China. Senior executives of the listed companies are prohibited from entering China, and their work permits have been revoked.​

The Chinese government is also exploring measures to support airlines burdened with increased costs from leasing Boeing aircraft. This includes potential financial assistance to mitigate the impact of rising maintenance expenses due to the restrictions.​

As tensions escalate, the situation underscores the fragility of U.S.-China trade relations and the potential for significant economic repercussions on both sides.​