China orders its airlines to stop buying Boeing planes

China has ordered its airlines to stop taking further deliveries from Boeing, the US manufacturer that, along with Airbus, ranks as one of the world’s largest aircraft producers. This reports news agency Bloomberg.

This is a retaliatory measure in the trade war launched by US President Donald Trump. Beijing has also asked Chinese airlines to stop purchasing aircraft equipment and parts from US companies.

Poker game

China is a crucial market for Boeing. Before the pandemic, about a third of Boeing 737s were delivered to the country. Over the next two decades, China will take about a fifth of all aircraft.

However, President Xi Jinping’s country and the US are embroiled in a trade war after Trump launched a tariff war with his rivals and allies. US import tariffs on products from China rise to 145%. China, in turn, levies a 125% import tariff on US goods.

Yet the ban will also cause problems in China. Chinese airlines have hundreds of Boeing aircraft needing repairs and spare parts. With the expected growth explosion of travelers in China, the country’s aviation majors also need planes. Due to the large number of orders, Airbus, Boeing’s European rival, is already having a long waiting list.

COMAC is too small a player

According to The New York Times, Boeing forecasts that China will account for 20% of global aircraft demand over the next two decades. This means China will need an estimated 6,500 single-aisle aircraft, such as the 737 Max, and more than 1,500 larger two-aisle aircraft, such as the Boeing 787 Dreamliner, Boeing said.

The only Chinese manufacturer that can currently rival Airbus and Boeing is Commercial Aircraft Corporation of China (COMAC). However, COMAC’s production level – accounting for 13 C919 aircraft in 2024 – is not comparable to that of its rivals. Airbus delivered 766 aircraft last year, compared with 348 for Boeing.

However, COMAC aims to produce at least 30 aircraft this year and eventually reach 150 C919s a year by the end of the decade. COMAC is a state-owned company and receives significant support from the Chinese government precisely because it wants to be less dependent on foreign aircraft manufacturers. According to estimates, the company has received about 72 billion dollars in state aid over 15 years for developing the C919.

Boost for Airbus?

On the other hand, Boeing had a problematic year, partly due to an incident in which an Alaska Airlines Boeing aircraft lost a door panel and two fatal crashes involving a 737 Max, respectively, in 2018 and 2019. With nearly 150,000 US employees, the company suffered a net loss of 11.8 billion dollars last year, its biggest loss since 2020.

According to Reuters, Air China, China Eastern Airlines, and China Southern Airlines, China’s three largest airlines, planned to receive 45, 53, and 81 Boeing planes respectively between 2025 and 2027. However, a temporary supply halt to China would not significantly impact Boeing, as the aircraft maker can divert planes to other airlines.

At the same time, the conflict between China and the US could also tighten economic ties between China and Europe. In recent years, Airbus signed a contract with China to supply an additional 240 to 300 aircraft.

Moreover, Airbus has had an assembly plant in Tianjin since 2008, the first outside Europe. In addition, Airbus opened the Airbus Lifecycle Services Center in Chengdu in January 2024, focused on aircraft recycling and dismantling.

Boeing, in contrast, only has a Completion & Deliver Center in Zhoushan, Zhejiang province, a joint venture facility with COMAC to install interiors and paint Boeing 737 aircraft built in the US before they are delivered to Chinese airlines.

One obstacle, however, is that Airbus’ order book is so complete that the company cannot immediately honor additional Chinese orders, although a second assembly line in Tianjin should be operational by early 2026.