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Boeing resumes deliveries of the 737 MAX 8 amid eased US-China trade tensions

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Boeing resumes deliveries of the 737 MAX 8 amid eased US-China trade tensions
Policy
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Boeing 737 MAX 8 aircraft China | Simple Flying

Boeing has successfully delivered a 737 MAX 8 aircraft to China, marking the first delivery since the company halted shipments in April due to increased tariffs between Beijing and Washington. The aircraft, painted in Xiamen Airlines colors, arrived at Boeing's Zhoushan finishing plant near Shanghai. This move follows an announcement by Boeing that deliveries would resume in June if the duties were temporarily reduced for ninety days.

China accounts for about 10% of Boeing's commercial backlog and represents a significant aviation market. Representatives from both countries are set to meet in London to discuss a potential trade deal. Boeing had previously indicated that Chinese customers would not accept new planes because of tariffs and was considering reselling dozens of aircraft. According to MarketScreener, Boeing plans to deliver 50 more 737 jets to Chinese carriers throughout the year.

Xiamen Airlines, founded in 1984 and headquartered in Fujian province, is one of China's prominent airlines with over 400 domestic and international flights. It handles nearly 40 million passengers annually and boasts a fleet of 211 aircraft. Xiamen Airlines ranks high among International Air Transport Association members for revenue and passenger turnover.

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Che Shanglun, Chair of Xiamen Airlines, noted the longstanding partnership with Boeing: "In our 34-year history of operations, Xiamen Airlines has steadily grown, doubling our fleet size over the past five years and achieving profits for 31 years in a row. Throughout that time, Boeing has been a valued partner in our growth and expansion by providing safe and reliable airplanes."

The demand for new aircraft is expected to grow significantly in China over the next two decades. By 2038, Boeing projects that China will need approximately 7,690 new aircraft at an estimated cost of $1.2 trillion.

The first delivery from Boeing's Zhoushan plant was initially planned for December 2018 but was delayed due to various factors including trade tensions. As part of its broader operations within China, Boeing's activities contributed over $1 billion to the Chinese economy as reported for the year 2018.

Recent reports have highlighted ongoing challenges faced by Boeing due to bilateral tariffs introduced during President Donald Trump's administration. These tariffs affected scheduled deliveries with some aircraft being rerouted back to the United States.

As it stands now, there are still undelivered orders from various Chinese airlines totaling 137 across several carriers including Air China, China Southern Airlines, Donghai Airlines, Hainan Airlines among others.

Organizations Included in this History
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