Boeing Deliveries to China: Backlog & Trade Relations
- shares experienced a boost, climbing 2.13% to $215.29, after a 737 MAX airplane landed in China for delivery. this marks the end of a delivery freeze that...
- The Boeing 737 MAX, adorned with Xiamen Airlines livery, arrived at Boeing’s Zhoushan completion center near Shanghai on Monday.
- The plane's journey from Seattle included refueling stops in Hawaii and Guam.
Boeing’s stock soared as the aerospace giant resumed 737 MAX deliveries to China, ending a delivery freeze triggered by tariff disputes. This meaningful move illuminates a potential thaw in U.S.-China trade relations, impacting Boeing’s commercial backlog, of which China represents a vital 10%. The Xiamen Airlines-liveried 737 MAX’s arrival near Shanghai signals a turning point; deliveries halted abruptly in April due to escalating tariffs. The resumption of deliveries underscores Boeing’s commitment to the Chinese market, crucial for addressing its backlog.With a 90-day tariff reduction in effect,the focus shifts to broader trade talks. For more insights into global business moves, consider checking out news Directory 3’s reporting. discover what’s next for Boeing as the countries negotiate a broader trade agreement.
Boeing Resumes 737 MAX Deliveries to China as Trade Tensions Ease
Updated June 10, 2025
Boeing Co. shares experienced a boost, climbing 2.13% to $215.29, after a 737 MAX airplane landed in China for
delivery. this marks the end of a delivery freeze that began in April due to increasing tariff disputes between
the U.S. and China. The resumption suggests a possible advancement in trade relations as both countries
temporarily reduce tariffs for 90 days.
The Boeing 737 MAX, adorned with Xiamen Airlines livery, arrived at Boeing’s Zhoushan completion center near
Shanghai on Monday. According to Flightradar24 data, the aircraft was initially transported to Zhoushan in March
but returned to the U.S. in mid-April when Chinese airlines ceased accepting new Boeing planes due to tariff
increases.
The plane’s journey from Seattle included refueling stops in Hawaii and Guam. boeing had previously indicated
that tariffs would prevent deliveries to Chinese customers, potentially forcing the company to resell numerous
aircraft.China accounts for about 10% of Boeing’s commercial backlog, making it a vital market for the
aerospace manufacturer.
Boeing had planned to deliver 50 jets to Chinese carriers throughout 2025. However, when deliveries were
halted, 41 aircraft were either in production or pre-built. At least three 737 MAX airplanes were sent back to
the U.S. from Zhoushan in April, where they had been undergoing final preparations for delivery.
Despite aiming to lower inventory, Boeing chose to hold onto these aircraft during the trade dispute rather than
redirecting them to other markets. The company’s stock performance reflects this resilience.
The company’s stock trades with a market capitalization of $162.47 billion. Despite financial headwinds,
including negative earnings of -$17.96 per share and negative free cash flow of -$7.94 billion, the resumption
of Chinese deliveries could help Boeing address it’s backlog and improve cash flow. Analysts’ price targets range
from $140 to $260, with an average target of $216.53.
What’s next
with a 90-day tariff reduction in place, China and the U.S. have an prospect to negotiate a broader trade
agreement. Representatives from both countries are scheduled to meet in London to discuss trade relations,
potentially paving the way for further easing of trade tensions and increased aircraft deliveries.