BUSINESS

Charts of the Day: Planes Become Latest Front in China-U.S. Trade War

Published: Apr. 17, 2025 7:39 p.m. GMT+8

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The aviation industry has been entangled in the escalating China-U.S. trade war.

On Tuesday, U.S. President Donald Trump said on his social media platform Truth Social that China has “reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft.”

Trump’s claim follows Bloomberg news reports that Beijing has ordered its airlines not to take any further deliveries of Boeing Co. jets, and that Juneyao Airlines Co. Ltd. (603885.SH) has delayed receiving a 787-9 Dreamliner, valued at about $120 million.

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The U.S.-China trade war has severely affected the aviation industry, with China halting or delaying Boeing aircraft deliveries, including a Juneyao Airlines 787-9 Dreamliner worth $120 million.
Steep tariff hikes (U.S. up to 245%, China 125%) are raising costs for aviation imports, with Boeing impacted the most; Chinese airlines are stockpiling parts and reconsidering transactions.
Chinese carriers, still facing excess aircraft capacity post-Covid, have deferred deliveries of 109 Boeing planes, including 30 737 MAX jets for China Southern Airlines.

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Who’s Who

Boeing Co.: Boeing Co. faces challenges amid the China-U.S. trade war, with Beijing reportedly halting further jet deliveries, including a delayed Juneyao Airlines 787-9 Dreamliner. Boeing has 109 aircraft pending delivery to Chinese mainland carriers. The trade tensions and retaliatory tariffs are impacting Boeing significantly, as Chinese airlines reconsider purchases and sales. Boeing's shares dropped 2.36% on Tuesday, and the company didn't comment on the situation.

Juneyao Airlines Co. Ltd.: Juneyao Airlines Co. Ltd. (603885.SH) has delayed receiving a Boeing 787-9 Dreamliner, valued at about $120 million. The aircraft has been awaiting delivery for over four years. Juneyao Airlines stated that no reports have been verified with them, nor have they made comments on the delay.

Commercial Aircraft Corp. of China Ltd.: The article mentions that Commercial Aircraft Corp. of China Ltd., a competitor to Boeing, is likely to be less affected by the U.S.-China trade tensions compared to Boeing. However, it will still face some challenges from the tariffs, as approximately two-thirds of aircraft materials originate outside the U.S., impacting all manufacturers.

Airbus SE: The article mentions that Airbus SE, a Boeing competitor, will likely be the least affected by the U.S.-China trade war and tariff disputes.

Kuehne + Nagel International AG: Kuehne + Nagel International AG, a logistics giant, recently warned that higher tariffs could significantly raise costs for U.S.-sourced aviation equipment and components, impacting the aviation industry amid the China-U.S. trade tensions.

China Southern Airlines Co. Ltd.: China Southern Airlines Co. Ltd. announced halting the sale of 10 Boeing 787-8 aircraft due to "matters affecting property rights transactions." The airline has 30 Boeing 737 MAX aircraft pending delivery and is one of Boeing’s significant customers in China. However, due to reduced international flights post-Covid-19, it currently has an excess capacity of wide-body planes.

Air China Ltd.: Air China Ltd. (601111.SH), one of China's "Big Three" state-owned airlines, has been a significant customer of Boeing. The airline is currently part of a backlog of 109 Boeing aircraft pending delivery to Chinese mainland carriers.

China Eastern Airlines Co. Ltd.: China Eastern Airlines Co. Ltd. (600115.SH), one of China’s “Big Three” state-owned airlines, has been a significant customer of Boeing. The article notes that Chinese airlines, including China Eastern, currently have surplus wide-body planes due to limited international routes since the Covid-19 pandemic, reducing the immediate need for new aircraft deliveries.

Han Kun Law Offices: Han Kun Law Offices is referenced in the article as a source of information about Chinese airlines being significant buyers of Boeing aircraft, including models like the 737s, 777s, and 787s.

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