China delays Boeing deliveries over tariff spat

Due to the ongoing tariff war between the U.S. and China, one Boeing aircraft that was scheduled for delivery to a Chinese airline has returned to the U.S., and another is currently on its way back, Reuters reported Monday. The fallout from the trade conflict is spreading, with Chinese imports of U.S. agricultural and livestock products also sharply declining.

Citing flight tracking data, Reuters reported that a Boeing 737 MAX, originally scheduled for delivery to a Chinese airline, took off from a Boeing facility near Shanghai and was en route to Guam. Another Boeing 737 MAX, intended for China’s Xiamen Airlines, also returned via Guam and landed at Boeing’s facility in Seattle, Washington, on the same day.

This situation stems from Chinese airlines delaying aircraft deliveries to avoid paying the high tariffs imposed as part of retaliatory trade measures between the two countries. Bloomberg reported earlier that the Chinese government instructed domestic airlines to halt purchases of American-made aircraft parts. Boeing, one of the U.S.'s leading advanced manufacturers, has historically exported about a quarter of its production to China. As a result, the company is facing significant losses from the high tariffs imposed during the Trump administration's second term.


Woo-Sun Lim imsun@donga.com