Beijing's bold aerospace move leaves Boeing reeling
In response to the trade war initiated by Donald Trump, China has dealt a significant blow to Boeing by imposing a ban on purchasing American aircraft for Chinese airlines. This move is well within China's capabilities, as the country has already developed the C919, its own aircraft that competes with the Boeing 737 MAX.
The ban on purchasing American passenger aircraft and parts by Chinese airlines is part of Beijing's response to American tariffs. Chinese airlines are also required to cancel existing agreements, except for those where American aircraft will be delivered before the reciprocal tariffs take effect.
This decision by Chinese authorities is a considerable setback for Boeing. The American manufacturer has been grappling for years with major issues caused by technical defects in its aircraft, as well as a temporary downturn in orders due to the pandemic. Consequently, since 2019, Boeing has lost $36 billion (approximately £27 billion). The latest decision by Beijing implies that Boeing's challenges may intensify.
This is because—according to Boeing's recent estimates—the Chinese aviation market is expected to account for 20% of global demand for aircraft by 2043. This translates to an order for about 8,800 new passenger planes, with over 6,700 being narrow-body aircraft like the Boeing 737 MAX.
Beijing's decision means Boeing forfeits a vast market—even if some orders go to Airbus and others to Chinese manufacturers.
Chinese passenger aircraft Comac C919
Moreover, China is prepared for this move. In 2023, the modern narrow-body Chinese passenger aircraft Comac C919 had its first commercial flight. Although production is still ramping up, and only a few dozen units have been manufactured, the Comac corporation already has orders for over 900 aircraft of this model.
The aircraft is about 39 metres long, has a wingspan of around 36 metres, and a range of—depending on the version—approximately 4,000 to 5,500 kilometres. The plane can accommodate 150 to 198 passengers.
The debut of the C919 was marred by a scandal over accusations from the U.S. of industrial espionage, which were corroborated by convictions in American courts.
Although Beijing promotes the C919 as a product of Chinese innovation, the aircraft incorporates many Western components, manufactured in China by companies established for this purpose, combining Western aviation expertise with Chinese entities.
Nevertheless, Comac has highly ambitious plans for expansion in both local and international markets—by 2031, the company aims to increase production to 20 units per month. The removal of Boeing from the Chinese market can only facilitate this ambition.
