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China orders airlines to halt Boeing deliveries amid trade war tensions

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China orders airlines to halt Boeing deliveries amid trade war tensions
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Kelly Ortberg CEO of Boeing | Official Website

The Chinese government has instructed its airlines to halt Boeing aircraft deliveries amid ongoing trade tensions with the United States. The trade war, initiated in April, continues to escalate, with both nations imposing tariffs on each other's goods. A recent report by Bloomberg, citing unnamed sources, revealed this new directive.

The National Development and Reform Commission (NDRC) in China, which regulates airlines' capacity to acquire new aircraft, is enforcing these instructions. Following this latest order, China is also considering aiding airlines that lease Boeing planes to manage increased expenses due to tariffs imposed on U.S.-manufactured goods.

The United States, under the administration of President Donald Trump, recently declared a "Liberation Day," enacting a 10% tariff on all imports and implementing higher tariffs on nations with significant trade deficits. The statement accompanying these measures accused China's "non-market policies" of contributing to both U.S. job losses and China's global economic dominance. On April 8, the U.S. increased its tariffs on Chinese products from 34% to 84%, with China responding in kind. Despite some retreat from these tariffs after pressure, the U.S. issued further tariff increases, with President Trump confirming the rates had soared to 145%.

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Boeing's leadership, including CEO Kelly Ortberg and CFO Brian West, has remained active in industry conferences and discussions, providing updates on the adjusted strategies to place their inventories into airlines' hands. At the Bank of America Global Industrials Conference, West emphasized the operations of Boeing's shadow factory, intended to distribute stored aircraft. He mentioned that while the 787 shadow factory has ceased operations, some aircraft deliveries may extend to early 2026 due to fleet planning requirements by customers.

At Boeing's fourth-quarter 2024 earnings call, Ortberg disclosed that the company had produced 55 pre-2023 737 MAX 8s and 25 pre-2023 787s, predominantly for airlines in China and India. Ch-aviation data indicates that since January, China-based airlines have acquired 20 Boeing aircraft, with a mix of 737 MAX 8s, 777Fs, and 787s.

Boeing's orders and deliveries show a total of 6,319 unfilled orders, with Chinese airlines holding only 2% of that backlog, equating to 130 aircraft. Additionally, records suggest that 35 aircraft designed for Chinese carriers have had their first flights between January 2019 and March 2025.

Airbus, Boeing's competitor, has orders for 332 aircraft from China-based airlines that have yet to be fulfilled. In 2025 alone, Airbus has delivered 37 aircraft to Chinese carriers. Both major manufacturers have established significant operations in China, underscoring the strategic importance of the large Chinese aviation market, which the International Air Transport Association reports is second only to the U.S. in domestic market size.

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