Boeing has resumed sending commercial aircraft to China, marking the first shipment since early April and signalling a thaw in trade relations amidst the ongoing tariff dispute between the US and China.
A Boeing 737 Max departed for Hawaii on Friday, based on Flightradar24 flight data. This flight serves as the initial leg of a journey across the Pacific to Boeing’s facility in Zhoushan, China, where the final delivery arrangements for this model are typically completed for local customers.
The revival of Boeing shipments to China, one of the world’s key aviation markets, follows recent disputes between Washington and Beijing over rare-earth minerals and semiconductor licensing.
Deliveries to China of new Boeing aircraft stopped in April in response to tariffs imposed by President Donald Trump. However, on May 12, the US and China agreed to roll back the bulk of tariffs for 90 days.
Trump said on Friday that US and Chinese representatives would meet June 9 in London to talk about a trade deal.
Boeing CEO Kelly Ortberg on May 29 said Chinese airlines would resume taking deliveries of Boeing aircraft in June.
At least three 737 MAX jets were repatriated by Boeing to the US in April from Boeing’s Zhoushan completion centre near Shanghai, where they had been placed for final work before delivery to Chinese carriers. The first plane to return from China was the same one that left on Friday for Hawaii.
The resumption of Boeing shipments is crucial for clearing existing aircraft inventory and enhancing the company’s financial standing. Additionally, the ongoing trade tensions have stalled a significant aircraft order from China since Trump’s visit to Beijing in 2017.
Both nations share a vested interest in maintaining trade within the aerospace sector, which has historically supported substantial trade surpluses for the US.
Chinese airlines rely on a diversified aircraft supplier base, including Boeing, Airbus, and domestic manufacturers such as Comac. The C919 jetliner developed by Comac necessitates US technology components for production.
Boeing had anticipated delivering 50 aircraft to China before the trade rift in April, leading to increased tariffs that rendered US-made jets uncompetitive in the Chinese market.
In the face of high demand and supply constraints, Boeing has expressed readiness to explore alternative buyers should trade disputes impede deliveries to China. However, this strategy could jeopardise meeting imminent delivery targets, cautioned analyst Kristine Liwag of Morgan Stanley in a client report dated May 16.
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