<br><br>**Tariff Truce China Lifts Ban on Boeing Deliveries, Boosting Aviation Industry**<br><br>The recent agreement between the United States and China has brought welcome relief to the aviation industry, as Beijing has lifted its ban on airlines taking delivery of Boeing planes. According to Bloomberg News, Chinese officials have begun informing domestic carriers and government agencies that deliveries of aircraft made in the US can resume.<br><br>In April, at least three jets were returned to the United States from China's delivery center due to tariffs imposed by Washington. In response, Boeing initially stated that customers in China would not take delivery of new planes due to these tariffs, and the company was exploring options for reselling potentially dozens of aircraft.<br><br>The temporary reduction in steep tariffs agreed upon by the US and China has paved the way for the resumption of deliveries. This development is significant, as China represents about 10% of Boeing's commercial backlog and is an important and growing aviation market.<br><br>Boeing had planned to deliver 50 jets to Chinese carriers this year, with 41 in production or pre-built. While some of these planes may still be sold to other airlines, the majority are expected to remain with their original intended customers. In fact, Chinese customers are expected to take 25 out of 30 remaining 737 MAX jets built before 2023 that have not yet been delivered.<br><br>At least four 777 freighter planes are also in production for Chinese carriers. This news is a welcome relief for Boeing, which had been hesitant to send the rejected Chinese planes elsewhere despite being keen to reduce high inventory levels. The company's hesitation was largely due to seating issues, as seats were chosen and purchased by the Chinese airlines.<br><br>The removal of the ban could not have come at a more opportune time, as Boeing is looking to revitalize its commercial aircraft sales. China had already granted exemptions from the high tariffs to some aerospace equipment parts, including engines and landing gear, before Monday's agreement.<br><br>As the aviation industry continues to navigate the complexities of global trade agreements, it is clear that this development will have far-reaching implications for airlines, manufacturers, and consumers alike. With the temporary reduction in steep tariffs, Boeing can now focus on delivering planes to its customers and addressing inventory levels.<br><br>This blog post explores the significance of China lifting its ban on Boeing deliveries, as well as the implications for the aviation industry.
--
Disclaimer:
*The information
in this electronic message is privileged and
confidential, intended only
for use of the individual or entity named as
addressee and recipient.
If you are not the addressee indicated in this
message (or responsible
for delivery of the message
to such person), you
may not copy, use, disseminate or deliver this
message. In such case, you
should immediately delete this e-mail and
notify the sender by reply
e-mail. Please advise immediately if you or
your employer do not consent
to Internet e-mail
for messages of this kind. Opinions, conclusions and
other information
expressed in this message are not given, nor endorsed by
and are not the
responsibility of *USTP* unless otherwise indicated by an
authorized representative of *USTP* independent of this message.*
0 Comments