Following the pause of US-China tariff escalations, the Beijing government has reportedly told Chinese airlines they can resume business with US manufacturers, paving the way for Boeing jet deliveries completion.
Bloomberg first reported the block on dealing with US plane and parts makers on 15 April, and again cited sources with knowledge of proceedings when reporting the lifting of commercial restrictions.
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The ban affected multiple Chinese carriers, including Juneyao Airlines and Xiamen Airlines, with some passenger jets returned to the US from Boeing’s ‘completion centre’ in Zhoushan, near Shanghai.
Boeing was widely reported to have been looking for new buyers for jets already finished or in production for Chinese customers. Although the manufacturer did not confirm how far those plans had progressed, it is unclear if the new tariff pause agreement will cause added confusion.
Although analysts are tentative on the full effect of the Geneva agreement, the signals from Beijing will breed hope that de-escalation continues.
In a joint statement, the two countries acknowledged “the importance of their bilateral economic and trade relationship to both countries and the global economy” and “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship”.
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By GlobalDataIt will see the US and China cut their tariffs on each other by 115pp, from 145% to 30% for Chinese goods entering the US and from 125% to 10% on some US goods entering China.
At least 10 Boeing 737-MAX jets were expected to be delivered to major Chinese airlines, including China Southern Airlines, Air China and Xiamen Airlines, and could now be completed within months.
