The ongoing trade dispute with the United States has reportedly caused the price of Boeing aircraft and components to more than double for Chinese airlines.
According to Bloomberg, citing sources with knowledge of the situation, China has instructed its airlines to halt further acceptance of Boeing aircraft as trade tensions with the U.S. intensify.
This action follows a series of reciprocal tariff increases between the two countries. Last week, the U.S. raised tariffs on Chinese goods to a total of 145%. China responded by imposing tariffs of 125% on U.S. imports and limiting exports of minerals critical for high-tech manufacturing.
Bloomberg also reports that Beijing has requested Chinese airlines to cease all purchases of parts or aircraft-related equipment from American companies.
The reported order follows China’s announcement of retaliatory tariffs, which have reportedly made the continued use of U.S. aircraft and parts economically unfeasible for Chinese companies due to significantly increased costs, according to Bloomberg’s sources.
Furthermore, the sources indicated that the Chinese government is considering measures to support airlines that are leasing Boeing aircraft and are now facing higher expenses.
Reuters reports that China’s three largest airlines – Air China, China Eastern Airlines, and China Southern Airlines – had planned to take delivery of 45, 53, and 81 aircraft from Boeing, respectively, over the next two years.
China represents a significant market for aircraft, having previously accounted for as much as a quarter of Boeing’s production.
U.S. President Donald Trump apparently criticized the decision in a Truth Social post on Tuesday, stating that Beijing “just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft.”
In April, Trump announced broad tariffs on countries he claimed had unfair trade deficits with the United States, leading to retaliatory measures from various nations.
Beijing has condemned the U.S. tariffs as “unilateral bullying.”
A Foreign Ministry spokesperson stated during a press briefing on Tuesday that “China will insist on shaking hands rather than shaking fists, tearing down walls instead of building barriers, connecting instead of decoupling.” This statement comes after Chinese President Xi Jinping began a series of visits to strengthen ties with neighboring Asian countries that are also facing substantial U.S. tariffs.