China's Boeing Ban Could Backfire On Its Own Aircraft Manufacturer, Comac

China's recent move to pause Boeing Co. BA aircraft purchases may end up hurting its own jet maker, Comac, which depends heavily on U.S. technology and has only a small number of planes currently in service

What Happened: The Chinese government’s move to stop buying Boeing aircraft could potentially harm Comac, a Shanghai-based aircraft manufacturer that is still striving to become globally competitive, according to a report by the Wall Street Journal.

The escalating trade tensions between the U.S. and China, coupled with high tariffs, could have significant implications for the aviation sector of both economies.

Chinese airlines have been instructed to withhold new orders for Boeing aircraft and seek approval before accepting delivery of plane orders.

However, Comac’s slow production rate means it is not in a position to quickly fill these orders. This situation could inadvertently benefit Airbus, another major player in the aviation industry.

By involving aircraft in the trade war with the U.S., China is unintentionally exposing a vulnerability, emphasizing the U.S.’s influence over Comac.

The company’s leading commercial aircraft model, the C919, is airworthy due to critical technology from U.S. companies including GE Aerospace, Honeywell International, and RTX.

Despite China’s efforts to promote the C919 as a competitor to the Boeing 737 MAX and Airbus A320neo, only about 16 C919s are currently flying commercially, all of which are operating domestically in China.

Why It Matters: The ongoing tariff dispute between the U.S. and China has seen the Trump administration raise tariffs on Chinese imports by up to 245%.

This has led to China’s ban on deliveries from Boeing BA, drawing the attention of President Donald Trump towards the company’s significant role in China's retaliation strategy, as highlighted by Bank of America (BofA).

On his part, President Trump has called upon China to initiate negotiations.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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