China has lifted the ban on the delivery of Boeing aircraft to Chinese airlines. This was reported by Bloomberg news agency based on insiders. The move follows the breakthrough in trade negotiations between Washington and Beijing. Both countries decided to temporarily reduce their import duties as a result.

A month ago, China banned the delivery of aircraft from the American manufacturer to Chinese airlines. Beijing also ordered a pause on all purchases of aviation-related equipment and aircraft parts from American companies. The ban followed US President Donald Trump's decision to increase import duties on most Chinese goods to 145 percent.

China then retaliated with 125 percent duties on American goods. As a result, Boeing found itself in the middle of the trade war between the two superpowers. The Chinese tariffs would make Boeings and American aircraft parts much more expensive for Chinese buyers. However, on Monday, China and the United States announced that they would significantly reduce their tariffs for the next 90 days. China currently imposes a 10 percent tariff on goods from the US and the Americans impose a 30 percent tariff on Chinese goods.

The resumption of deliveries to China will give Boeing an immediate boost. The aircraft manufacturer will now not have to find new buyers for the approximately 50 aircraft that it will deliver to China this year. However, the recovery in deliveries could be short-lived if the US-China trade war is not resolved within the next three months.

Boeing's role in international trade also appears to be becoming increasingly political. Trump announced a trade agreement with the United Kingdom last week, including a $10 billion aircraft deal to supply Boeings to British Airways.

--- DB4 - 20230201
* Origin: AVIATION ECHO HQ (2:292/854)