China has begun returning Boeing aircraft to the US, with a 737 Max intended for Xiamen Airlines landing back at Seattle’s Boeing production hub over the weekend. The move comes after China ordered its airlines not to take further deliveries of Boeing planes in response to the US imposing 145% tariffs on Chinese goods.
A trio of 737 Max 8 jets were recalled from China last week, and a witness confirmed that another jet was returned to the US. This marks the latest development in the ongoing trade war between the two countries.
Analysts say that airline CEOs may prefer to defer plane deliveries rather than pay duties, which could impact Chinese airline operations. Boeing’s year-to-date deliveries show 18 aircraft have been delivered to nine airlines in China, with plans for more deliveries between 2025-2027.
The move is seen as a significant blow to Boeing, which was angling to challenge Airbus’ dominance in the Chinese market. The US exporter has been recovering from an almost five-year import freeze on 737 MAX jets following two fatal crashes involving the plane model in Indonesia and Ethiopia.
As tensions between China and the US continue to escalate, it remains to be seen how this development will impact Boeing’s future deliveries and operations in the country.
Source: https://www.foxbusiness.com/markets/china-begins-returning-boeing-aircrafts-us