Beijing orders airlines to suspend Boeing deliveries

China has ordered its airlines not to take any further deliveries of Boeing jets in response to the US decision to impose 145% tariffs on Chinese goods, a report said on Tuesday, citing people familiar with the matter.

Shares of Boeing — which looks at China as one of its biggest growth markets and where rival Airbus holds a dominant position — were down 2% in early trading.

The global aerospace industry is in the middle of a full-blown tariff war, with planemakers, airlines and suppliers reviewing contracts worth billions of dollars, after US supplier Howmet Aerospace ignited an debate over who should bear the cost of the tariffs.

China’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines — had planned to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025 and 2027.

Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies, the report said.

China’s move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country.

The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, the reported added.

Meanwhile, China’s foreign ministry said the country was “tearing down walls” and expanding its circle of trading partners, “shaking hands” instead of “shaking fists”.

Beijing is working on diversifying ties amid an escalating trade war with the US.

“In the face of external uncertainties, China will insist on shaking hands rather than shaking fists, tearing down walls instead of building barriers, connecting instead of decoupling,” Lin Jian, a foreign ministry spokesperson, told a press briefing on Tuesday.

The World Trade Organisation has warned the high-stakes Sino-US trade row could cut the shipment of goods between two economies by as much as 80% and severely hurt global growth.

After Hanoi, Xi will continue his Asian trip by visiting Malaysia and Cambodia, which could be slapped by additional U.S. tariffs of 24% and 49%, respectively.

World