China rescinded the restriction on Boeing aircraft operations.
There's some good news for Boeing and Chinese aviation as reports suggest that the country has given the green light for American aircraft deliveries to restart. Sources confirm that domestic airlines and state organizations can now plan their deliveries on their own terms.
According to Bloomberg, while the ban on deliveries has been lifted, the exact timeline for when Boeing planes will be delivered to China remains uncertain. A Boeing spokesperson kept mum on the matter.
Back in April, China issued a statement forbidding Chinese airlines from taking delivery of Boeing aircraft and purchases of aviation equipment and parts from American companies, in response to the US increase in tariffs on Chinese goods to 145%. As a result, the cost of aircraft and components produced in the US could double, making Boeing deliveries to Chinese airlines economically unviable.
On May 12, the US and China reached an accord to mutually reduce tariffs from 125% to 10%, effective May 14. However, the previously imposed 20% "fentanyl" tariffs still stand, resulting in an effective rate of 30% for China. In a joint statement, both nations agreed to establish a mechanism for further discussions on economic and trade relations. The Chinese side will be represented by Vice Premier He Lifeng, and the US side by Secretaries Mnuchin and Lighthizer, with consultations potentially taking place in the US, China, or a third country.
So, if you're keeping up with the #China and #USA scene, or just #Tariffs and #Aviation in general, you might want to stay tuned as this situation unfolds. Here's the link to our @expert_mag Telegram channel where you can get the latest updates! 📲
Sources:1. Boeing Deliveries to China May Resume After Tariff Ease, Sources Say2. China Bans Chinese Airlines From Taking Delivery of Boeing Aircraft3. Boeing Looks to Deliver 50 Jets to Chinese Airlines in 20254. China Lifts Ban on Boeing Aircraft Deliveries as Part of Trade Deal5. US-China Trade Truce: What's in it?
The resumption of Boeing aircraft deliveries to China might potentially inject new life into both the American aircraft industry and Chinese aviation business, as reported sources suggest that tariff ease has facilitated the process. However, the precise timeline for deliveries remains vague, according to Bloomberg.
