RClarkTaylor
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In reaction to growing trade tensions with the United States, China has directed its airlines to cease receiving new Boeing aircraft deliveries and to stop purchasing aviation parts made in the United States, China responded to the U.S levying up to 145 percent duties on Chinese goods with 125 percent tariffs on U.S imports, including aircraft and related components, which prompted the issuance of this instruction, the action essentially stops Boeing from delivering more aircraft to Chinese airlines including China Southern Airlines, Air China, and Xiamen Airlines, some of the aircraft are already constructed and are waiting to be delivered, either in the United States or at Boeing facilities in China.
The expense and difficulty of maintaining and growing their fleets using American-made products have increased dramatically as a result of Chinese authorities orders for domestic airlines to stop purchasing aircraft-related equipment and parts from American businesses, the retaliatory tariffs have disrupted current contracts and future procurement plans by significantly raising the cost of Boeing aircraft and parts for Chinese clients, according to Bloomberg, the Chinese government is looking into methods to help airlines that lease Boeing aircraft and now have to pay more for operations as a result of these taxes.
The aviation industry is caught in the crosshairs of the continuing trade war between the two biggest economies in the world, which has significantly intensified with this escalation, in addition to having an effect on sales and the supply chain of the American aerospace behemoth, the suspension of Boeing deliveries also poses a threat to China's efforts to expand and become more dependent on its own domestic aircraft manufacturing sector, given that China's aviation business is among the fastest-growing in the world, the move further complicates the global aviation market.
While there have been some reversals or exemptions in previous tariff battles, the current position represents Beijing's firm response to what it describes as illegal "bullying" by Washington, even though the situation is still fluid. The Chinese government is nonetheless dedicated to punitive actions that safeguard its national interests, despite dismissing any tariff increases as ineffectual. The aviation industry is not included in the new tariff exclusions offered by U.S. officials for specific high-tech products.
The expense and difficulty of maintaining and growing their fleets using American-made products have increased dramatically as a result of Chinese authorities orders for domestic airlines to stop purchasing aircraft-related equipment and parts from American businesses, the retaliatory tariffs have disrupted current contracts and future procurement plans by significantly raising the cost of Boeing aircraft and parts for Chinese clients, according to Bloomberg, the Chinese government is looking into methods to help airlines that lease Boeing aircraft and now have to pay more for operations as a result of these taxes.
The aviation industry is caught in the crosshairs of the continuing trade war between the two biggest economies in the world, which has significantly intensified with this escalation, in addition to having an effect on sales and the supply chain of the American aerospace behemoth, the suspension of Boeing deliveries also poses a threat to China's efforts to expand and become more dependent on its own domestic aircraft manufacturing sector, given that China's aviation business is among the fastest-growing in the world, the move further complicates the global aviation market.
While there have been some reversals or exemptions in previous tariff battles, the current position represents Beijing's firm response to what it describes as illegal "bullying" by Washington, even though the situation is still fluid. The Chinese government is nonetheless dedicated to punitive actions that safeguard its national interests, despite dismissing any tariff increases as ineffectual. The aviation industry is not included in the new tariff exclusions offered by U.S. officials for specific high-tech products.
