China has removed the ban on airlines taking delivery of Boeing Co. airplanes that lasted almost a month, according to the group, after a breakthrough on trade talks with the US that recently cut tariffs on both sides temporarily.
This week, officials in Beijing have started telling domestic carriers and government departments that the deliveries of US-made aircraft can resume, according to the people, who added that they could not be identified because the information is private. The officials have allowed the airlines to deal with their delivery timing and terms, one of the people said.
The restarting of deliveries to China will provide an immediate lift to Boeing. The thaw comes as the world's two largest economies arrived at a tariff truce, where the U.S. lowered its combined 145% tariffs on most Chinese imports to 30% for 90 days. China agreed to lower its 125% tariffs on U.S. goods to 10%, and to withdraw other countermeasures it had taken against the U.S. since April 2. Still, the restoration of jet deliveries could be short-lived if the tariff work fails to be resolved during the three-month respite.
Boeing found itself in the midst of the trade skirmish as retaliatory duties were imposed by China on the heels of President Donald Trump's original tariffs on most of the U.S. trade partners. This effectively priced Boeing jets off the negotiating table, while China instructed its airlines to cease deliveries of its aircraft.