The Wall Street Journal reported on May 17th: "After a temporary ceasefire agreement was reached in the trade war between China and the United States, China has reopened to Boeing. According to insiders, Beijing has lifted an earlier restriction and informed domestic airlines that they can accept previously ordered Boeing aircraft."

Comment: For Boeing, this is undoubtedly a "timely rain". China is an important overseas market for Boeing. During the trade friction, Boeing suffered setbacks in the Chinese market. A large number of aircraft that had been produced or assembled faced stagnant sales due to suspension of acceptance by Chinese airlines, increasing inventory pressure. This ban lift allows Boeing to digest accumulated orders, revitalize cash flow, and restore production rhythm.

However, there are still uncertainties in the future. Within the subsequent 90-day tariff suspension period, both sides need to ensure the implementation of their commitments to avoid repeated trade frictions. Meanwhile, China's aviation industry should seize the opportunity to continuously promote the technical upgrade and capacity enhancement of the domestically produced large aircraft C919, reducing dependence on foreign products.

Boeing has inventory backlog issues, but the current backlog situation has improved somewhat and remains within controllable limits. Previously, due to factors such as the Boeing 737 MAX grounding in 2019, Sino-US trade friction, and the pandemic, Boeing accumulated a large amount of inventory. For example, by the end of 2024, its inventory includes 55 Boeing 737 MAX 8s and 25 Boeing 787s, all of which were produced before 2023 and require rework due to manufacturing problems.

Airbus is Boeing's strong rival in the global civil aircraft market. In 2024, Boeing's aircraft orders totaled 377, only 46% of Airbus' orders at 826. Meanwhile, COMAC's C919 continues to develop. By 2025, its production capacity will increase by 50% to 75 units, with plans to reach a production capacity of 200 units/year by 2029, which will impact Boeing's market share in the future.

Source: https://www.toutiao.com/article/1832429066892295/

Disclaimer: The article represents the views of the author alone.