Boeing resumes exports after US-China trade thaw
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Boeing will resume aircraft deliveries to China next month as Beijing lifts its import ban following trade negotiations and mutual tariff reductions.
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A Boeing 737 Max jet prepares to land at Boeing Field following a test flight in Seattle, September 30, 2020 (AP)
Boeing will resume delivering aircraft to China next month, according to CEO Kelly Ortberg, marking a significant shift after a temporary freeze triggered by heightened trade tensions between Washington and Beijing.
“China has now indicated… they’re going to take deliveries,” Ortberg said during remarks at the Bernstein Strategic Decisions Conference, as reported by CNBC. “The first deliveries will be next month.”
In April, Bloomberg reported that Chinese authorities had instructed domestic airlines to halt all future deliveries of Boeing aircraft and suspend the procurement of aircraft-related equipment and components from US companies. The move came amid a sharp escalation in the ongoing trade war, following US President Donald Trump's imposition of 145% tariffs on Chinese imports and a swift 125% retaliatory response from Beijing.
The suspension prompted Trump to call on Boeing to cancel its contracts with China, citing Beijing’s refusal to accept previously scheduled deliveries.
China cites US tariffs over halt in Boeing deliveries
China attributed its decision to halt the acceptance of new aircraft from Boeing to US tariffs, stating the measures have "disrupted the international air transport market."
"The United States' wielding of tariffs has severely impacted the stability of the global industrial chain and supply chain," China’s Ministry of Commerce said in a statement.
The ministry’s spokesperson added that both Chinese airlines and US-based Boeing have "suffered greatly" from the ongoing trade tensions.
The US has recently imposed tariffs of up to 145% on numerous Chinese imports, prompting Beijing to respond with duties of up to 125% on American goods.
Trump criticizes China over aircraft deal collapse
US President Donald Trump also weighed in, criticizing Beijing for abandoning the agreement and suggesting Boeing should "default China for not taking the beautifully finished planes."
China’s Ministry of Commerce responded on Tuesday, stating that "many companies have been unable to carry out normal trade and investment activities" as a result of the Trump administration’s tariff policies.
The ministry reiterated China’s willingness to support continued business cooperation between companies from both countries and expressed hope that Washington would "listen to the voices of enterprises" and foster a stable and predictable environment for trade and investment.
Read more: China grants US tariff exemptions to limit trade war impact
