China Clears Path for Boeing Aircraft Deliveries, Shares Rise 1.17% in Europe

Trade Truce Unlocks Stalled Aircraft Deliveries

China has lifted its ban on commercial airlines receiving new aircraft from Boeing Co, marking a key step forward in thawing US-China trade tensions. According to individuals with direct knowledge of the matter who spoke with Bloomberg, airline carriers and national agencies in China have received notice authorizing them to resume accepting US-manufactured planes. These sources, who requested anonymity due to the sensitivity of the information, also said carriers now are permitted to arrange delivery terms independently.

Boeing’s listing on the Gettex exchange suggests European investors were pleased with the news. The stock rose 1.17% in early trading hours, with the share price reaching €180.88.

Boeing had suffered under the initial restrictions, with Chinese customers halting aircraft acceptances and some jets even being returned to the States. Amid these hurdles, Boeing signaled its willingness to resell the stuck inventory to carriers across Malaysia, Saudi Arabia, and India.

Today’s reversal, which will allow around 50 jets slated for China to be delivered, comes after the US and China reached a temporary truce, curbing tariffs imposed during their protracted economic confrontation. Under the agreement, the tariffs tied to Chinese goods were reduced from 145% to 30%. China, in turn, agreed to lower its levies on US products from 125% to 10%.

While this development immediately benefits Boeing by reintroducing access to one of its largest markets, industry experts suggest this relief may be temporary should both governments not arrive at a long-term resolution.