In 1972, President Richard Nixon’s historic visit to Beijing led to Boeing entering the Chinese market. Fast-forward to 2025, and a very different sort of presidential influence is making headlines.
On Tuesday, Bloomberg reported that Chinese airlines have been told not to place new orders with Boeing.
The report also said carriers must seek approval before accepting scheduled deliveries and they shouldn’t buy aircraft-related equipment from U.S. companies. The directive from the Chinese government comes amid heightened trade tensions between Beijing and Washington.
President Donald Trump criticized China’s decision in a Truth Social post on Tuesday. “They just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft,” Trump said, referring to a deal signed during his first term.
The economic brinkmanship from both sides is intensifying. Earlier this month, the Chinese Commerce Ministry said: “China will fight until the end if the U.S. side is bent on going down the wrong path.”
China is far from alone in navigating new tariffs from the Trump administration, but it is being hit harder than most.
Boeing is now caught in the geopolitical cross-fire, but the impact of Tuesday’s decision could have implications for Chinese airlines too.
How Exposed is Boeing to China?
In 2018, the Chinese market made up around 40% of global deliveries for Boeing’s flagship 737 Max narrowbody jet.
Now, the situation is different.
In 2019, China halted 737 Max deliveries following two fatal crashes and rising trade tensions during the first Trump administration. A 737 final assembly facility in the port city of Zhoushan was also shuttered. China was one of the last nations to allow the Max to return to regular passenger service, partly due to U.S.-China tensions.
Despite China having a smaller role in Boeing’s commercial outlook in recent years, it remains a critical source of revenue for the company.
China is expected to make up 20% of Boeing’s orders over the next two decades, according to a commercial outlook report the company released in August 2024. If realized, this would make China Boeing’s largest single overseas market.
Boeing also anticipated that China would eventually have the world’s largest widebody fleet and need aviation services worth up to $780 billion through 2043 to maintain its growth – contracts that the U.S. firm is keen to win.
The company described itself as “the largest customer” of China’s aviation manufacturing industry, contributing more than $1.5 billion to the country’s economy.
Boeing did not immediately respond to a request for comment.
How Could Chinese Airlines Be Impacted?
Beijing is using China’s enormous buying power as leverage in the ongoing trade dispute. Even a relatively modest narrowbody aircraft carries a list price of more than $100 million. However, it is a high-risk strategy, with potential downsides for Chinese airlines too.
The country’s carriers are heavily – but not exclusively – reliant on Boeing aircraft, particularly for short-haul and regional routes.
China’s appetite for planes from European rival Airbus has grown in recent years, providing stiff competition for Boeing and weakening its market position. This is especially true for longer term orders as opposed to in-service aircraft.
Skift analysis of data from aviation analytics company Cirium shows the level of exposure to Boeing among Chinese carriers.
China Southern – the nation’s largest airline by fleet and passengers carried – has a fleet of more than 200 Boeing 737 planes, with 27 of the newest 737 Max variant on order. This is in addition to more than 40 widebody aircraft including the 777 and 787, with a handful of additional twin-aisle deliveries also pending.
However, it’s Air China that has the largest spread of Boeing aircraft. The flag carrier operates everything from the short-haul 737 through to the 747 jumbo jet. Cirium data suggests the airline has 124 Boeing aircraft in its current roster, complemented by almost 250 planes built by European firm Airbus.
Other major Chinese operators include Hainan Airlines and Xiamen Airlines, which each operate more than 150 Boeing planes, as well as Shanghai Airlines, which has over 80 aircraft made by the U.S. firm.
Could U.S. Spare Parts be in Jeopardy?
In total, Cirium data suggests there are more than 1,500 Boeing planes in service in China, forming 40% of the country’s total fleet of approximately 3,900 commercial aircraft.
An extended ban on buying new parts for these jets could cause operational headaches for Chinese carriers.
Given the enormous cross-border complexities associated with global supply chains, it remains unclear whether Tuesday’s report of a directive from Chinese authorities could impact spare parts for existing Boeing planes in China.
Chinese operators also have a further 205 planes on order with Boeing. On Tuesday, Bernstein Research estimated that of the 737 Max aircraft already built and pending delivery, 27 are due to Chinese customers this year.
China is somewhat unique in having a homegrown rival to Airbus and Boeing. Beijing has been keen to promote aircraft made by state-owned plane maker Comac. China’s three biggest state-owned airlines each have 100 C919s on order, with further deals expected.
Its flagship C919 jet is being positioned as a competitor to Boeing 737 and the Airbus A320, but it too relies on Western companies for key components including engines and avionic equipment.
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