Amid the ongoing “trade war” with the US, it has been claimed that China is instructing its airlines not to accept more aircraft deliveries from Boeing in the country.

As US President Donald Trump imposed a 145% tariff on Chinese products, China is said to have retaliated. According to a report by Bloomberg, citing sources familiar with the matter, China has given instructions to its airlines not to purchase more airplanes from the aviation giant Boeing.

BOEING STOCKS DECLINE, RIVAL SURGES

Being one of Boeing’s biggest markets, the company’s stocks dropped by 3% following the news. On the other hand, shares of Airbus, another major player in the aviation industry dominating the Chinese market, rose by 1%. Boeing was founded in the US in 1916, while Airbus was established in France in 1970.

DELIVERY OF NEARLY 200 AIRCRAFT WITHIN 2 YEARS WAS PLANNED

Air China, China Eastern Airlines, and China Southern Airlines, the three largest airlines in China, were planning to accept 45, 53, and 81 Boeing aircraft deliveries respectively between 2025-2027. The Beijing government also reportedly instructed companies not to purchase aircraft parts or equipment from US companies. This decision is expected to increase maintenance costs for aircraft within the country.

It was claimed that the Chinese government is also considering ways to assist airline companies that lease Boeing aircraft and face higher costs. Following accidents involving the Boeing 737 MAX aircraft in 2018 and 2019, resulting in the death of nearly 350 people, China was the first country to ground the planes. Additionally, in 2019, China suspended orders and deliveries of the aircraft in question.