Logistics

China Orders Airlines to Halt Boeing Parts Purchases, Escalating Trade War

By Business Day AfricaApril 16th, 2025
Emirates A380 and Boeing 777 performing a flypast during Dubai Airshow 2023. Image Courtesy (Emirates).

China has ordered its domestic airlines to stop buying aircraft parts and jets from the United States, delivering a sharp blow to American aerospace manufacturers as trade tensions between the two countries intensify.

The directive affects major Chinese carriers, including Air China, China Eastern and China Southern, and halts the delivery of about 179 Boeing jets scheduled through 2027.

The move is expected to raise maintenance costs and disrupt fleet expansion plans, as airlines shift focus to European manufacturer Airbus and domestic producer COMAC.

The decision marks one of Beijing’s strongest retaliatory measures in the escalating trade war, following Washington’s imposition of 145 percent tariffs on Chinese imports earlier this month.

It comes as relations between the world’s two largest economies continue to deteriorate, with tit-for-tat measures now impacting critical industries, including aviation, semiconductors and rare earth minerals.

Boeing, which counts China as one of its largest overseas markets, saw its shares drop three percent in early trading.

The company has faced mounting uncertainty in recent years due to safety concerns, supply chain issues, and now, rising geopolitical tensions.

The US-China trade war began in 2018 with Washington citing unfair trade practices and intellectual property theft.

Since then, both countries have levied hundreds of billions of dollars in tariffs, disrupting global supply chains and slowing economic growth.

Earlier this year, the United States reactivated powers under the International Emergency Economic Powers Act, triggering new tariffs on Chinese goods.

China responded by raising its own duties to 125 percent and restricting exports of vital raw materials used in electronics and green technologies.

Analysts say China’s latest move targets not only Boeing’s bottom line but also signals its intention to reduce dependence on US technology and deepen domestic capacity.

With no signs of de-escalation, the standoff risks further fragmentation in global trade and threatens to upend investment strategies across sectors reliant on cross-border cooperation.

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