Background of the Trade Conflict
The trade dispute between the USA and China has intensified in recent years. The Trump administration imposed tariffs on Chinese imports, which led to retaliatory measures by China. These measures include tariffs on US products, making the import of American aircraft for Chinese airlines economically unviable.
Impact on Boeing
Boeing, as the largest exporter in the USA, is particularly affected. Chinese airlines are refusing to take delivery of ordered aircraft because they have become unaffordable due to the tariffs. China has also imposed a general ban on accepting new Boeing jets and has introduced additional approval requirements for already delivered aircraft.
Return of Aircraft
Boeing has already begun to take back ordered aircraft from China. In particular, models of the Boeing 737 Max 8, which were ready for Chinese airlines at the Zhoushan delivery center, are to be brought back to the USA. This step underscores the seriousness of the situation and the challenges Boeing is facing.
Sales and Market Impact
Boeing had planned to deliver 50 aircraft to Chinese customers this year. These are now to be sold to other buyers, as demand from other airlines is high. The refusal of Chinese customers to take delivery of Boeing aircraft has significant effects on Boeing’s order situation and its future market position. The Chinese aircraft manufacturer Comac is benefiting from this situation by gaining market share with its C919 model.
Investor Relevance
For investors, these developments are highly relevant as they directly impact Boeing’s future revenues and market position. The company’s ability to find alternative markets for the already produced aircraft will be crucial to mitigate the effects of the trade conflict. Furthermore, the current situation could lead to a shift in global market shares in aircraft manufacturing, with Airbus potentially benefiting from the situation.