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The Chinese government has taken a significant step in the escalating trade war with the United States by temporarily banning Boeing from delivering aircraft to Chinese airlines.
The measure is a direct response to a recent decision by the United States. As the Americans have decided to drastically increase import tariffs on Chinese goods by a staggering 145 percent. Beijing has also instructed Chinese airlines to immediately cease the purchase of aviation-related equipment and components from American companies. Furthermore, Beijing is reportedly considering providing financial assistance to airlines that lease Boeing aircraft and are consequently facing potentially higher operating costs, according to Bloomberg.
Trade tensions between the two economic powerhouses had started intensifying after a series of reciprocal increases in import duties. China initially retaliated by raising tariffs on American products by 125 percent. With this new ban on Boeing deliveries, the country is significantly escalating the economic confrontation. At the time of publication, President Trump has not yet publicly responded to the latest Chinese measure.
Comac C919 as a potential target
During President Trump’s previous term in office, tensions between the US and China had already reached a critical point. At that time, the US government considered blocking the export of essential equipment and components to the Chinese aircraft manufacturer Comac. Comac’s latest passenger aircraft, the C919, relies on engines supplied by the American company General Electric and crucial systems from Honeywell International. Although this potential export ban was discussed in 2020, it could serve as a possible countermeasure by the US in the current context to impact the emerging Chinese aviation industry.