China has suspended purchases of aircraft from American company Boeing and aviation equipment parts in response to the ongoing trade war with the U.S.
The Chinese authorities have also instructed local carriers to stop purchasing equipment and parts from American manufacturers, according to Bloomberg sources. This decision was made after China announced a 125% tariff on U.S. goods in retaliation for the U.S. raising its tariffs on Chinese goods to 145%. According to the sources, these tariffs would significantly increase the price of American-made aircraft and parts, making Boeing purchases economically unfeasible for Chinese airlines.
Chinese authorities are looking for ways to support their airlines, which lease Boeing aircraft and now face rising costs. Chinese airlines, including China Southern Airlines Co., Air China Ltd., and Xiamen Airlines Co., have contracts for the delivery of Boeing 737 Max planes. According to Bloomberg sources, Beijing may still accept some of them, as the contracts were signed before April 12, when the new tariffs took effect.
After the tariff introduction, Boeing’s stock dropped by 10%, and today it became known that China also suspended the export of some critical rare-earth minerals and magnets, which play a key role in the global industry.
