China no longer want Boeing. Airlines will not receive new machines

In response to the US duties to Chinese goods, the authorities in Beijing ordered the airline to suspend the reception of subsequent Boeing aircraft – Bloomberg agency said on Tuesday, citing sources. Chinese carriers are also to stop buying equipment and parts for aircraft from American companies.

The decision was made after China announced last week a retaliation duties of 125 percent. to American goods, which was a response to the increase in tariffs by US President Donald Trump on the import of Chinese goods to 145 percent.

“The same fees would cause a more than double increase in the costs of aircraft and parts produced in the USA, making the acceptance of Boeing aircraft impractical for Chinese airlines,” writes Bloomberg.

Currently, about ten Boeing 737 Max aircraft are ready to introduce Chinese carriers to the fleets. Some of them are located near the Boeing factory in Seattle, and others in the Reception Center in Chinese Zhyhan. Boeing has no production line in China.

The dispute between the two largest economies of the world strikes the American aircraft manufacturer, for which China is an important market.

It is forecasted that in the next two decades China will be responsible for 20 percent. global demand for planes. In 2018, almost a quarter of the Boeing production went to China.

Trade turmoil created during the first Trump administration and Boeing's qualitative problems caused the orders of Chinese lines to postpone the European Airbus, which has a production line in China. (PAP)

KRP/ MMS/