China halts Boeing aircraft deliveries amid escalating US trade dispute
What's the story
Amid rising trade tensions with the US, China has ordered its airlines to halt all future deliveries of Boeing aircraft.
The order comes after US President Donald Trump imposed tariffs of up to 145% on Chinese goods.
Chinese carriers have also been asked not to buy any aircraft-related equipment or parts from American companies.
China's latest round of retaliatory tariffs includes a 125% tax on American goods, massively hiking the cost of US-made planes and components.
Market impact
Boeing's dilemma in China's aircraft market
China is looking at ways to support airlines leasing Boeing jets, now facing higher costs due to the tariffs.
This trade war has put Boeing in a tight spot, especially since China is expected to make up 20% of global aircraft demand over the next two decades.
In 2018 alone, almost a quarter of all Boeing planes were delivered to China.
However, in recent years, there have been no major new orders from China, mainly due to trade disputes and internal problems at the company.
Supplier shift
China's shift toward Airbus amid trade tensions
Notably, China was the first country to ground the 737 Max model in 2019 after two fatal crashes.
Trade disputes under both Trump and Biden administrations have pushed China to increasingly turn toward Airbus, a European manufacturer for its aircraft needs.
The shift highlights China's continued reliance on foreign companies to meet its growing demand for passenger planes.