- A Boeing Jet in the company’s completion work Flew back to the USA in China. The new aircraft was to be delivered to a Chinese airline, but it was never handed over. At the beginning of this week, the Chinese government reported that the airlines said that she would not buy new Boeing jets and to receive permission before they had accepted any planes that it had already ordered but had not yet been delivered.
A brand new Boeing Jet is involved in the trade war between China and the USA
The plane arrived in Boeing’s China facility in Zhoushan, China, just to find out that it had to return to the USA, after To act publication The air flow. Since the United States and China are locked up in a trade war that adapts the two largest economies in the world against each other, companies such as Boeing that do business in both countries are caught in the crosshairs. Early this week, Bloomberg reported The Chinese government officials had instructed domestic airlines not to order new Boeing aircraft and to obtain approval before they already take up orderly aircraft.
The aircraft, which has been reported from the completion in Zhoushan to the USA, has been one of three 737 maximum jets that have arrived since March. after To Reuters. In his ZHOUSHAN facility in East China (about three and a half hours from Shanghai), Boeing uses the finishing touch to already constructed aircraft, installs seats and paints the outside. The fate of the other aircraft in the Zhoushan facility was not immediately clear.
On Thursday a spokesman for the Foreign Ministry of the People’s Republic of China told Reporters, they were “not familiar” with the reports of a stop for Boeing orders.
According to Boeing, the Chinese government was reported to be targeted and may have had a potentially crippled cost increase from the tariffs of the United States and China. With one of the most complex supply chains in the world, the input costs in the United States risen due to tariffs in one of its imported parts, many of which are many there.
At the same time, China’s retaliation duties of 125% for US goods for Boeing’s aircraft meant unaffordable for Chinese airlines. In address To the employees in March – a month before President Donald Trump announced his comprehensive tariff policy –Kelly Ortberg, CEO von Boeing Warned that they could increase the costs and disrupt the company’s carefully managed supply chain.
In A Hearing of the Senate Early this month, Ortberg Repeated the damage that widespread tariffs could have on Boeing’s business. Ortberg emphasized parts from all over the world and sold the vast majority of his planes abroad. Boeing risked to be twice damaged by tariffs because his own costs would increase while his sales would decrease.
“Free trade is very important to us,” Orthberg told the Committee on Trade, Science and Transport of the Senate this month. “It is important that we continue to have access to this market and that we do not get into a situation in which certain markets are closed for us.”
Boeing did not react Assets‘s request for comment.
China is a lucrative opportunity for Boeing as one of the fastest growing air travel markets in the world. In September 2023 Boeing forecast Over the next 20 years, China would make up 20% of the world excursion and the doubling of its fleet of trade aircraft to around 9,600 jets. When Boeing opened his ZHOUSHAN facility in the middle of a former merchants between the United States and China in the middle of 2018, the managers had advertised the aviation as a “light view” between the two countries.
In this round of the US China trade war, however, practically no companies were spared by all industrial giants. Boeing’s stock fell by 17%in the two days immediately after the introduction of Trump on April 2. Since this first goal, her stock has largely recovered. However fell 2.5% The day on which it was reported that China had ordered a stop when ordering new aircraft.
The work of Boeing’s favor is his role as a real American manufacturing power plant, the exact business that the Trump administration claims that it is intended to protect itself.
“The Trump government cannot ignore Boeing”, ” wrote Bank of America Air and space analyst Ronald Epstein this week.
So far this seems to be true. Boeing reported problems with Chinese deliveries attracted the president’s attention.
China “has just taken over the Big Boeing deal and said that they will not be fully committed to airplanes,” Trump wrote in a social media post on Tuesday.
This story was originally on Fortune.com