US-China Truce Allows China to Accept Boeing Aircraft Deliveries

Chinese Officials Inform Airlines and Agencies of 'Ban Lift'

Some of the 50 Aircraft Scheduled for Delivery to China This Year Returned to the US

With the US-China tariff war reaching a truce, China has lifted its previous ban on Chinese airlines receiving Boeing aircraft from the US last month.

According to Bloomberg, citing sources on the 13th (local time), Chinese officials began informing Chinese airlines and government agencies this week that they can receive US-made aircraft.

This follows the US and China's agreement to a tariff truce. The US and China agreed to suspend tariffs imposed since April for 90 days. As a result, US tariffs on China were reduced from 145% to 30%, and China's tariffs on the US were reduced from 125% to 10%, each lowered by 115 percentage points. However, if no resolution is reached within 90 days, jet deliveries may also be short-lived.

Although the ban has been lifted, it is uncertain how quickly Boeing aircraft will be delivered to Chinese airlines. Initially, about 50 Boeing jets were scheduled to be delivered to China this year.

Some Boeing aircraft have been returned to the US, and Boeing has warned that it will seek alternative buyers for jets not yet delivered to China.

China is expected to account for 20% of global aircraft demand over the next 20 years. In 2018, about a quarter of Boeing's aircraft production was concentrated in China. However, Boeing has not received large orders from China in recent years due to fatal crashes in 2019 and US-China trade tensions.

China halted operations of the Boeing 737 Max model after two fatal crashes involving the model in 2019. Additionally, early trade disputes during the Trump administration shifted China's orders to Europe's Airbus.

Meanwhile, a trade agreement announced by the Trump administration with the UK last week includes a $10 billion deal for Boeing to sell 32 787-Dreamliners to British Airways.

Boeing's stock price rose 1.1% in pre-market trading on the US stock exchange that day.

Guest Reporter Kim Jung-ah kja@hankyung.com