Boeing repatriates planes rejected by China amid trade tensions

24-04-25

Amid rising trade tensions between the United States and China, Boeing has begun repatriating several 737 MAX aircraft that were rejected by Chinese airlines. This move reflects the complications arising from tariffs imposed by both nations, directly affecting the aviation sector.

One of the first aircraft returned was destined for Xiamen Airlines and was at Boeing's completion centre in Zhoushan, China.

Following the imposition of new tariffs by the United States, raising duties on Chinese goods to 145%, and China's response with tariffs of 125% on US goods, delivery of this aircraft became financially unfeasible. The plane returned to Boeing's Seattle facility, setting a precedent in the trade relationship between the two countries.

The situation is exacerbated by the Chinese government's order to its airlines to suspend Boeing aircraft deliveries and halt the purchase of US aircraft components. This has left several aircraft that were ready for delivery in limbo, creating uncertainty in the market and affecting the planning of the airlines involved.

During the first quarter of 2025, Boeing managed to deliver 18 aircraft to Chinese airlines, mostly 737 MAX models, with China Southern Airlines being the main recipient. However, to date, there have been no new orders from China so far this year, indicating a possible reassessment of commercial relations in the aviation sector.

Against this background, other international airlines have shown interest in acquiring the units rejected by Chinese carriers. Malaysia Aviation Group, parent company of Malaysia Airlines, is already in talks with Boeing to acquire some of these aircraft, seeking to renew its fleet with aircraft that meet its cabin and operating standards.

The escalating trade tensions not only affect Boeing, but also have implications for the global aviation industry. The uncertainty generated by tariffs and restrictions imposed by both governments could disrupt the supply chains and strategic planning of airlines around the world.

Boeing, for its part, faces the challenge of redeploying rejected aircraft and maintaining its position in the international market. The company has expressed concern about the deteriorating trade relations between the US and China, highlighting the importance of the latter as a key market for its operations.

The return of aircraft by Chinese airlines to Boeing is a reflection of the complexities and challenges facing the airline industry in an environment of increasing trade tensions. The situation calls for a reassessment of commercial strategies and an adaptation to the new realities of the global marketplace.

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