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After months of turbulence in the skies of global trade, Boeing (BA-0.01%) is finally seeing clearer weather in one of its most crucial markets: China.
Bloomberg, citing unnamed sources familiar with the matter, reports that Chinese regulators have quietly lifted a ban on local airlines accepting deliveries of Boeing jets. The move comes as China and the U.S. agreed to a temporary reduction in tariffs — a détente that could offer Boeing a much-needed runway for recovery. Domestic airlines and government agencies in China were informed this week that they may resume taking delivery of U.S.-made aircraft, Bloomberg reports, though they’ve been given discretion on the timing and terms of those deliveries.
The end of the delivery freeze comes on the heels of another big win for Boeing: a $10 billion deal with British Airways (IAG-0.36%) parent IAG to sell 32 long-haul Dreamliners that was finalized a day after the U.S. and the U.K. announced a trade pact.
Boeing stock rose 2.3% in Tuesday morning trading. The stock is up about 18% so far this year after a rough 2024.
The temporary U.S.-China tariff truce creates an immediate path for Boeing to deliver an estimated 50 jets to China this year — aircraft that otherwise risked being rerouted to other buyers.
For Boeing, which hasn’t seen a major Chinese order in years — due to both trade wars and self-inflicted wounds — the thaw could be crucial. In 2018, China accounted for almost a quarter of the company’s aircraft deliveries. Though relations have cooled amid geopolitical tensions and quality-control controversies, the country still represents about 20% of expected global aircraft demand over the next two decades.
Boeing CEO Kelly Ortberg said during the company’s April earnings call that China was the only country where tariffs had caused an “issue” with the company’s deliveries. Ortberg said many Chinese customers had simply refused to take the planes.
That refusal, reportedly coordinated by Beijing, forced Boeing to consider rerouting aircraft originally intended for China. Some planes were flown back to the U.S., while others attracted interest from carriers in India, Malaysia, and Saudi Arabia.
Resuming deliveries in China now saves Boeing from the costs and complications of finding new buyers — and ensures prompt payments.
Still, the relief could prove temporary. With only three months to negotiate a lasting trade agreement, the current reprieve could dissolve if talks stall or reverse. A prolonged standoff could once again put Boeing’s China strategy in limbo — and reignite competition from rivals such as Airbus (AIR-1.40%), which has steadily gained ground.