Boeing’s China hopes face trade war headwinds, supply chain risks: analysts

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Boeing expects Chinese airlines to resume orders that were paused during the trade war with the United States, but analysts warn supply chain constraints and tariff uncertainties could slow actual deliveries.

Kelly Ortberg, CEO of the American aircraft giant, said Chinese airlines have confirmed they would begin taking deliveries of Boeing planes this month after Beijing and Washington agreed to a 90-day trade truce in May.

In April, Ortberg was quoted as saying that deliveries to China had been halted “due to the tariff environment”.

Global aviation supply chains have been rattled by uncertainty following US President Donald Trump’s trade policies since his return to the White House in January. After tariffs between China and the US surged in April, some Chinese airlines refused to accept deliveries of Boeing planes, Ortberg confirmed last month.

On May 29, the Boeing CEO told the Bernstein Strategic Decisions Conference that Chinese airlines “are planning and telling us they’re going to take deliveries”.

As the Trump administration pushes for more American goods to be sold overseas, Alberto Vettoretti, managing partner of the business consultancy Dezan Shira & Associates, said officials in Beijing could view the resumed Boeing orders as leverage in broader trade talks.