China halts Boeing jet deliveries, raising geopolitical stakes — BofA
Published: 11:59 15 Apr 2025 EDT
Boeing Co (NYSE:BA, ETR:BCO) may face short-term turbulence after China reportedly halted deliveries of its jets and directed airlines to stop purchasing US aircraft parts, but Bank of America analysts believe the impact on the American planemaker will be limited.
According to Bloomberg, Chinese regulators have paused all Boeing aircraft deliveries and asked domestic carriers to cease buying aircraft-related equipment and parts from US firms.
The move comes amid growing tensions between the US and China and could impact more than 190 jets currently in Boeing’s China backlog.
Despite the disruption, Bank of America reiterated a Neutral rating on Boeing with a $185 price objective, saying the company has "no difficulty reallocating the aircraft to other airlines."
"Boeing is the US's largest exporter, as such, we are not surprised by China's move; however, we do see this as unsustainable," analysts wrote in a note on Tuesday.
“When considering balances of trade, we think the Trump Administration can't ignore Boeing.”
Boeing's China backlog includes 174 737s, 20 787s, and one 777, with an additional pool of unallocated aircraft — widely believed to be destined for Chinese airlines — comprising 530 737s, 87 787s, and 51 777s, according to Bank of America. Data from Cirium estimated 29 of those aircraft were due for delivery to China in 2025 alone.
While China accounts for roughly 20% of the global large civil jet market over the next two decades, the bank argued that China's dependence on Western aerospace technology will limit the viability of long-term decoupling.
"If China stops buying aircraft components from the US, the C919 program is halted or dead," the analysts noted, referring to the Commercial Aircraft Corporation of China's flagship jet, which competes with Boeing’s 737 and Airbus’s A320. The C919 relies on 48 US suppliers, and Bank of America noted that Chinese suppliers mostly provide lower-value components such as aerostructures.
Airbus could see a strategic advantage in China given its local final assembly line in Tianjin and Europe’s trade relationship with Beijing. Still, analysts cautioned that Airbus cannot fully replace Boeing in the Chinese market due to limited production capacity.
"China's inventory of leased aircraft can bridge the aircraft supply gap, but not forever," the analysts wrote.
Boeing, meanwhile, may find alternative markets for its aircraft, particularly in high-growth regions like South Asia. “In the event this is prolonged (or China decides to cancel orders), in our view – Boeing should have no difficulty reallocating the aircraft to other airlines that need additional capacity,” the analysts noted. “We see India as a potential recipient.”
Shares of Boeing lost around 1% in midday trading Tuesday.
