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China Returns Boeing Jets Amid Tariff Tensions

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Chinese airlines have commenced the process of returning Boeing aircraft to the United States, with one 737 Max successfully arriving at Boeing’s production facility in Seattle over the weekend, as reported by Reuters.

The return of the aircraft occurred shortly after China issued directives to its airlines, prohibiting further deliveries of Boeing planes in reaction to the U.S. imposing high tariffs of 145% on Chinese goods, according to a report by Bloomberg News from last week.

Last week, three 737 Max 8 jets that were prepared for delivery to two Chinese airlines at Boeing’s Zhoushan delivery center were recalled to the U.S., as reported by aviation news source The Air Current, citing insights from two individuals familiar with Boeing’s strategy.

Reuters corroborated that a witness observed a Boeing aircraft, originally designated for China’s Xiamen Airlines, landing back at the manufacturer’s Seattle facility. This specific plane, adorned with Xiamen’s livery, was among several 737 Max jets awaiting finalization and delivery at the Zhoushan completion center.

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side view of a Boeing 737 Max with Xiamen livery painted on glides across tarmac

Boeing and Xiamen Airlines were contacted for comment, but neither organization provided an immediate response.

During a press briefing on April 16, Lin Jian, the chief spokesperson for the Chinese Ministry of Foreign Affairs, expressed unfamiliarity with any formal directive from China instructing airlines to cease deliveries from Boeing.

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Boeing 737 max on tarmac

According to The Air Current, the halt in Boeing deliveries has also had domestic repercussions. A Chinese aircraft leasing firm faced a setback when another Chinese airline withdrew from its agreement to take delivery of a plane, forcing the lessor to seek new markets for the available 737 Max 8, as confirmed by two sources familiar with the situation.

Industry analysts noted that airline executives might choose to postpone aircraft deliveries rather than incur the tariffs, which could negatively impact the operational capabilities of Chinese airlines.

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Boeing, considered a major U.S. exporter, is poised to be significantly affected by the ongoing trade tensions as it seeks to compete with Airbus in the Chinese market.

As of now, Boeing has delivered 18 aircraft to nine airlines in China this year. The leading three airlines in the country—Air China, China Eastern Airlines, and China Southern Airlines—are scheduled to receive 45, 53, and 81 Boeing planes, respectively, between 2025 and 2027, according to Reuters.

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This disruption regarding aircraft deliveries arises as Boeing attempts to recover from a near five-year suspension of 737 MAX imports in China, initiated in 2019 due to safety concerns following two tragic crashes involving this aircraft model in Indonesia and Ethiopia.

Finance Newso News’ Pilar Arias and Reuters contributed to this report.

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