China Lifts Boeing Delivery Ban After Rate Agreement With US

ILLUSTRATION/UNSPLASH/Fasyah Halim

JAKARTA - China lifted a one-month restriction on airlines receiving Boeing aircraft after a breakthrough in trade negotiations with the United States resulting in a temporary reduction in tariffs on both sides.

Bloomberg quoted sources as saying Beijing officials had begun to notify domestic airlines and US-made aircraft delivery government agencies could resume.

In addition, airlines in China are also given the freedom to arrange deliveries according to the schedule and policies of each company.

As reported by ANTARA from Anadolu, Tuesday, May 13, the easing of restrictions came after the world's two largest economies announced a trade agreement, in which the US lowered the total rate by 145 percent over most goods from China to 30 percent in the 90-day period.

As of April 2, China also suspended further action against the US and reduced its tariff by 125 percent over US imports to 10 percent.

In a joint statement, the two governments acknowledged the importance of sustainable, long-term, and mutually beneficial trade relations.

Boeing was previously in a difficult situation after China imposed tariffs in retaliation for US President Donald Trump's decision to charge most of major trading partners.

On April 15, Beijing ordered airlines to stop taking Boeing planes, which removed the company from the Chinese airline market.

On the same day, Trump confirmed China had withdrawn and would not take the plane from a major deal with Boeing.

"They just broke a big deal with Boeing, stating they would not take over the plane they had ordered," Trump said.

The resumption of shipments is expected to have a positive impact on Boeing's business and operational relations in China, one of the largest aviation markets in the world.