China Resumes Boeing Orders Amid Tariff-Cutting Deal

China has lifted its ban on Boeing aircraft deliveries, marking a partial resolution to trade tensions with the United States. This move follows a bilateral agreement to significantly reduce tariffs for a 90-day period, temporarily pausing a dispute that had impacted multiple sectors, including aerospace.

Chinese authorities have notified domestic airlines and relevant agencies that deliveries of US-manufactured aircraft can resume. This decision ends a one-month suspension during which Beijing prohibited airlines from accepting Boeing planes due to escalating trade measures.

"Airlines have been given discretion to arrange deliveries on their own schedule and terms," said a source familiar with the matter, speaking on condition of anonymity due to the sensitivity of the discussions.

While Boeing declined to comment and the Civil Aviation Administration of China (CAAC) has not responded to inquiries, the development holds significant implications for the aerospace manufacturer. Earlier this year, Boeing revealed that several Chinese clients had rejected aircraft deliveries due to tariffs, forcing the company to explore reselling dozens of planes.

This policy shift aligns with a recent agreement to lower reciprocal tariffs. The United States reduced tariffs on most Chinese imports from 145% to 30%, while China cut its tariffs on US goods from 125% to 10%. Beijing also agreed to lift certain retaliatory measures imposed since April, including restrictions on aircraft leases and select imports like medical devices and chemical products.

However, one source cautioned that "the resumption of deliveries could be temporary if trade negotiations fail to produce a lasting resolution."

Despite the policy reversal, Boeing has yet to secure new aircraft orders in China, where market share has increasingly shifted to Airbus SE, its European competitor. Boeing has reported no major deals in China in recent years, and uncertainty remains about its long-term prospects in the country.

Still, China is a critical market for the company, projected to account for 20% of global aircraft demand over the next two decades. In 2018, nearly 25% of Boeing’s production was destined for Chinese carriers.

Under the resumed agreement, approximately 50 Boeing aircraft are expected to be delivered to China this year.

This development follows earlier signs of easing tensions. In late April, China signaled a willingness to resume “normal cooperation” with US firms, suspending elevated tariffs on select imports.