China has banned Boeing aircraft for its airlines and restricted purchases of aircraft equipment and parts from the United States. The move is the latest step in an escalating trade war between Beijing and Washington over the United States’ high tariffs on Chinese goods. According to Bloomberg, Chinese authorities have ordered a halt to new aircraft from the largest American aircraft manufacturer, affecting key contracts worth billions of dollars. The ban also applies to components, which could create serious difficulties for Chinese carriers that use Boeing equipment.

The move follows China’s sharp hike in tariffs on American goods to 125% in retaliation for US tariffs that have reached 145%. The measures have made importing US aircraft and parts uneconomic, forcing Beijing to look for alternative ways to support its aviation industry. In particular, China’s three largest airlines – Air China, China Eastern Airlines and China Southern Airlines – had planned to take delivery of 179 Boeing aircraft between 2025 and 2027, including the 737 Max. Those deliveries are now at risk, threatening the carriers’ long-term plans and hurting Boeing’s position in one of the world’s largest aviation markets.

The Chinese market has traditionally been important for Boeing, accounting for up to 20% of global aircraft demand. But the current trade war initiated by the Donald Trump administration is forcing Beijing to shift its focus to European rival Airbus and domestic manufacturer COMAC. China’s actions are a response to U.S. protectionist policies that Beijing says violate free trade principles and threaten the global economy. At the same time, Chinese authorities are considering measures to support airlines that use Boeing to minimize financial losses from new tariffs.

Reuters confirmed that the ban affected deliveries of about 10 737 Max jets that were already in preparation for delivery, including orders for China Southern Airlines, Air China and Xiamen Airlines. Some of those planes, according to Bloomberg, could be delivered if their payment and documentation were completed before the new tariffs were imposed on April 12. However, further purchases, including parts, are on hold entirely, sending Boeing shares down 3% in pre-market trading to $154,40.

The Indian Express clarifies that China is actively promoting its manufacturer COMAC, whose C919 model already competes with Boeing 737 and Airbus A320 in the domestic market. Analysts predict that the new restrictions will accelerate the transition of Chinese airlines to domestic aircraft, although COMAC cannot yet fully replace Western giants due to limited production capacity. The Wall Street Journal of April 14 adds that the trade war has already led to an increase in airfares in China, as carriers face a shortage of equipment and spare parts.