The growing trade tensions between China and the United States have now spilled over into the civil aviation sector. According to a report by Bloomberg, Beijing has issued an official directive to Chinese airlines, instructing them not to accept any new aircraft deliveries from the US-based company Boeing. Additionally, they have been asked to halt the purchase of aircraft equipment and spare parts.
This move follows the US administration under President Donald Trump imposing tariffs of up to 145% on Chinese goods. In retaliation, China announced that it would implement counter-tariffs of 125% on imports from the United States.
Chilly Winds from China for Boeing
Over the past 50 years, Boeing has held a significant position in China’s civil passenger and cargo transportation sector. According to the company, more than 10,000 Boeing aircraft currently flying worldwide contain components manufactured in China. Boeing also contributes over $1.5 billion annually to the Chinese economy through its supply chain, joint ventures, training programmes, and research and development investments in the country.
However, the intensifying trade war is threatening this strategic partnership. Reports indicate that Chinese carriers have been urged not only to halt aircraft deliveries but also to stop purchasing all US-made aviation equipment and spare parts.
Xi Jinping Emphasises “Free Trade”
Amid these developments, Chinese President Xi Jinping embarked on a tour of Southeast Asia. During a speech in Vietnam, Xi stressed that China and Vietnam should act together in resisting what he described as the United States’ “unilateral bullying” and reaffirmed his commitment to global free trade.
Trump’s Harsh Remarks: “A Meeting on How to Ruin the US”
Meanwhile, Donald Trump issued scathing comments regarding Xi Jinping’s diplomatic visits. Referring to Xi’s meeting with his Vietnamese counterpart To Lam, Trump remarked that it was “like a meeting on how to ruin the United States”.
