Share
News

China Orders Airlines Not to Take Deliveries of Boeing Planes

Share

Chinese airlines are refusing to take delivery of Boeing aircraft amid the ongoing trade standoff between the United States and their country.

Boeing CEO Kelly Ortberg told CNBC on Wednesday that his company had three 737 Max airplanes in China ready for delivery. Boeing has since flown two of the planes back to the U.S. and plans to bring the third one back soon.

“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Ortberg said.

“We have roughly 50 airplanes in our plan this year going into China, so we’re going to be pretty pragmatic with what we do here,” he continued. “For those airplanes that haven’t been built yet, we’ll be looking to maybe redirect those to other customers.”

“For the airplanes that have been built, we call it remarketing. There’s plenty of customers out there looking for the Max aircraft in particular,” Ortberg said. “We’re not going to wait too long. I’m not going to let this derail the recovery of our company.”

Earlier this month, President Donald Trump raised baseline tariffs on Chinese imports to 145 percent and Beijing retaliated with a 125 percent tariff on U.S. goods, according to Reuters.

Trump encouraged Boeing in a Truth Social post to “default China” for refusing to take possession of the planes the companies had previously committed to purchase.

Is Boeing headed in the right direction?

“It better stop, NOW!” Trump wrote.

Presumably, he is arguing for Boeing to find China in breach of contract and seek a legal remedy in court.

CNBC noted that Ortberg’s comments come “after Boeing reported a narrower-than-expected loss for the first quarter and cash burn that came in better than analysts feared as airplane deliveries surged in the three months ended March 31.”

As a sign that trade relations may be thawing between Washington and Beijing, China announced it was exempting certain U.S. imports from its 125 percent tariff, Reuters reported.

The government “is asking firms to identify critical goods they need levy-free, according to businesses that have been notified, in the clearest sign yet of Beijing’s concerns about the trade war’s fallout,” the news outlet said.

Related:
Standout Athlete and Multiple Family Members Killed in New York Plane Crash

Trump also exempted some Chinese imports, including electronics, from the high tariff rate, but they are still subject to the 20 percent tariff to address the ongoing fentanyl crisis.

Trump told Time that his administration is talking with China, and that Chinese President Xi Jinping called him regarding trade, though Beijing disputes the talks are happening.

“I don’t think that’s a sign of weakness on his behalf,” Trump said of Xi.

“There’s a number at which they will feel comfortable,” he added. “But you can’t let them make a trillion dollars on us.”

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , ,
Share
Randy DeSoto has written more than 3,000 articles for The Western Journal since he began with the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.

Conversation