China has reportedly lifted a ban on local airlines taking deliveries of Boeing aircraft after Beijing reached a preliminary trade deal with the Trump administration on Sunday.
The ban was put in place in the middle of last month as part of a series of retaliatory measures against the United States and its 145% tariffs on most Chinese-made goods.
Airlines, including Air China, China Southern, and Donghai Airlines, had been ordered to stop taking any new deliveries of Boeing aircraft, as well as any spare parts from US suppliers.
In the days following the introduction of the ban, Boeing was forced to fly several new planes due to be delivered to Chinese airlines out of the country and back to the United States.
According to the US aerospace giant, there are currently 130 unfilled aircraft orders for Chinese airlines, most of which are for its best-selling 737MAX single-aisle aircraft.
Following talks between U.S. and Chinese negotiators in Geneva, Switzerland, over the weekend, the Trump administration lauded the ‘art of the deal’ in reaching a temporary agreement with Beijing to reduce reciprocal tariffs for a period of 90 days.
Both countries will, however, retain a 10% tariff rate on most goods and services, although China agreed to lift all non-tariff countermeasures taken against the United States.
Sources cited by Bloomberg said that this includes lifting the ban on Boeing aircraft deliveries and that Chinese airlines have been told that they can start taking these new planes this week.
Some international airlines had hoped to take advantage of the trade war by swiping aircraft destined for Chinese carriers. Airlines such as Air India and Malaysian Airlines had indicated that they would be willing to take on aircraft ordered by Chinese airlines.
Riyadh Air, which is yet to launch, had also expressed an interest in taking over orders from Chinese carriers if the dispute had dragged on.
