Boeing is facing a new crisis, this time not of its making: China has reportedly directed its airlines not to take deliveries of any of the company’s jets.
Why it matters: Boeing is one of America’s most critical manufacturers and exporters, making it an easy target as President Trump’s trade war escalates.
The big picture: China has effectively halted imports of American jets and aircraft parts though the directive, Bloomberg reported.
Zoom out: It’s the latest in a series of setbacks for Boeing, which has dealt with a quality crisis, legal problems and labor issues in recent years.
By the numbers: Chinese airlines had plans to buy 29 Boeing aircraft in 2025, according to Bank of America analysts.
- The country is expected to acquire 20% of all large civil jets over the next two decades.
The impact: Boeing already has a production backlog, so it’s not a devastating development in the short run.
- “Boeing should have no difficulty reallocating the aircraft to other airlines that need additional capacity,” Bank of America analyst Ronald J. Epstein said today in a research note. “We see India as a potential recipient.”
- Plus, China may not be able to maintain the stoppage for long. The country has limited ability to make its own jets — and Boeing competitor Airbus likely can’t boost production enough to fill the void, Epstein says.
Yes, but: “We do see this as unsustainable” and, if it lasts, it “could point to a structural advantage for Airbus in China,” Epstein says.
- Boeing was not immediately available to comment.
- Chinese leader Xi Jinping said Monday that nations need to “safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”
The bottom line: Boeing investors aren’t panicking: The stock was down only 1% in early afternoon trading.
