China Reverses Boeing Delivery Ban Amidst Easing Trade Tensions

Airlines in China can resume taking delivery of Boeing planes as US-China trade relations improve, signaling a potential thaw in the tariff dispute.

China has lifted its ban on airlines accepting deliveries of Boeing planes following the United States and China's agreement to temporarily reduce significant tariffs, according to a Bloomberg News report published on Tuesday, May 13th, citing sources familiar with the matter.

This week, Beijing officials have initiated advising domestic carriers and government agencies that they can resume accepting deliveries of U.S.-made aircraft, Bloomberg indicated.

Last month, Boeing had to repatriate at least three jets from its delivery center in China back to the US.

Bloomberg News reported a month earlier that Boeing was facing a ban on imports from China as part of the ongoing trade war between the world's two largest economies.

Beijing has not issued any comments regarding the halt of Boeing deliveries. Senior industry sources also informed Reuters that they were unaware of official instructions that specifically prevented taking Boeing planes.

Boeing stated last month that its customers in China would not be taking delivery of new planes due to tariffs and was looking to resell potentially dozens of aircraft.

On Monday, Washington and Beijing agreed to reduce reciprocal tariffs of over 100 percent during a 90-day negotiation period, following weekend talks in Geneva.

Boeing declined to comment on the Bloomberg report. The Civil Aviation Administration of China did not respond to requests for comment.

Airlines in China contacted by Reuters did not respond to requests for comment.

Beijing stated two weeks ago that both Chinese airlines and Boeing had been significantly affected by tariffs imposed by the US.

China accounts for approximately 10 percent of Boeing's commercial backlog and is a crucial and expanding aviation market.

Boeing executives mentioned during the company's first-quarter earnings call that they planned for 50 jets to be delivered to Chinese carriers this year, with 41 already in production or pre-built.

Despite Boeing expressing that other airlines were interested in taking the rejected Chinese planes, the planemaker has been hesitant to send the jets elsewhere despite wanting to reduce its high inventory levels.

Seating was one specific challenge, since the seats had been chosen and purchased by the Chinese airlines.

Chinese customers are expected to take 25 out of the 30 remaining 737 MAX jets built before 2023 that have not yet been delivered, Boeing said.

At least four 777 freighter planes are also in production for Chinese carriers, according to a source familiar with the matter and aircraft tracking database Aviation Flights Group.

China had already granted exemptions from the high tariffs to certain aerospace equipment parts, including engines and landing gear, before Monday's agreement.