Boeing to Resume Aircraft Deliveries to China Next Month

Aircraft Deliveries to China Resume After Tariff Truce
Boeing to Restart Shipments Halted by US-China Trade War

Boeing will resume aircraft deliveries to China starting next month, according to a report by CNBC on May 29 (local time).

Chief Executive Officer Kelly Ortberg stated at the annual conference hosted by investment bank Bernstein that China has now agreed to accept aircraft deliveries again, adding, "The first delivery will take place next month."

Previously, in retaliation for the United States imposing ultra-high tariffs, China had ordered its domestic airlines to halt deliveries of aircraft ordered from Boeing. As a result, Xiamen Airlines in China even returned one Boeing aircraft. However, after the two countries agreed to a tariff truce, the Chinese government on the 13th allowed domestic airlines and related agencies to resume acceptance of U.S.-made aircraft deliveries.

CEO Ortberg predicted that the tariff war initiated by the Donald Trump administration would not have a significant impact. He also commented on the rapidly changing trade war, saying, "Personally, I do not believe such policies will be permanent."

Ortberg explained that the wide-body Dreamliner aircraft produced in South Carolina, United States, include parts imported from Italy and Japan. He stated that Boeing pays tariffs on these components, but most of these tariffs can be recovered when the aircraft are exported overseas. He added, "We only incur actual tariff costs when we deliver aircraft to U.S. airlines."

Boeing plans to increase production of its best-selling 737 MAX model. The U.S. Federal Aviation Administration (FAA) had limited the monthly production of this model to 38 units after an incident last year in which a Boeing 737 operated by Alaska Airlines had a section of its fuselage tear away mid-flight after taking off from Portland, Oregon.

CEO Ortberg said that Boeing could produce 42 MAX aircraft per month by mid-year, and is considering increasing this to 47 per month in six months. The largest MAX 10 and the smallest MAX 7 models among the 737 series are also expected to receive FAA certification by the end of this year.