China Southern halts sale of Boeing jets on US new | Australian Markets
China Southern Airlines suspended the sale of 10 used Boeing Co. 787-8 Dreamliner plane, after Beijing’s escalating trade struggle with the US put provide of plane to the mainland at risk.
The airline, one of the nation’s Big Three state-owned carriers, had deliberate to interchange the US-made widebodies with bigger, newer planes higher suited to China Southern’s long-haul community.
That strategy was upended by the tariffs imposed by US President Donald Trump and the retaliatory measures put in place by Beijing over this previous weekend.
The airline’s transfer illustrates a knock-on impact from the widening trade standoff, rippling out past offers for new merchandise being taxed by the 2 governments to have an effect on the secondary trade in used plane.
China Southern cited “events impacting the transactions” as a motive for halting the sale, in response to notices from the Shanghai United Assets and Equity Exchange posted on April 11, the day Beijing introduced retaliatory tariffs on US items amongst different measures.
The airline made the choice as a result of it was anxious the trade struggle would hinder its capability to obtain more Boeing plane, in response to Nikkei, which reported on the suspension earlier.
Bloomberg News reported on Tuesday that Beijing ordered its airways to stop taking deliveries of Boeing jets and requested carriers to stop shopping for US-made plane components, because the trade struggle between the 2 largest economies barrels ahead.
The US has positioned tariffs as high as 145 per cent on Chinese items, whereas Beijing has hit American merchandise with levies of 125 per cent – quantities that make new Boeing purchases impractical.
Following the Bloomberg story, Trump weighed in to criticise Chinese leaders with a post on his Truth Social community. He stated China “just reneged on the big Boeing deal, saying that they will ’not take possession’ of fully committed to aircraft.”
Guangzhou-based China Southern Group is one of the world’s largest service teams, with stakes in 10 airways and working 932 business jets. It carried 165 million passengers and dealt with 1.8 million tons of cargo and mail quantity in 2024, in response to its most up-to-date financial report.
Bloomberg.
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