Boeing Shares Rise as China Lifts Ban on Aircraft Deliveries

Published 2 hours agoBA

Boeing Shares Rise as China Lifts Ban on Aircraft Deliveries

Boeing's stock has seen a significant uptick following China's decision to remove its ban on the delivery of Boeing aircraft. This development comes after a reduction in tariffs agreed upon during the ongoing trade negotiations between China and the U.S., Reuters reported. The decision is crucial for Boeing, which has faced challenges in navigating the international trade landscape.

The resumption of deliveries to Chinese airlines is expected to have a positive impact on Boeing's stock, as China accounts for roughly 10% of the company's commercial order backlog. Boeing had planned to deliver 50 jets this year to China, with 41 of them already built or under construction. This resumption could potentially ease financial pressures as the company ramps up its operations to accommodate the increased demand from one of its largest markets.

Boeing's CEO, Kelly Ortberg, has expressed optimism about the company's operations in China, emphasizing that the recent developments in U.S.-China trade relations will not hinder Boeing's recovery plans or delivery goals. Despite previous disruptions, Boeing is poised to capitalize on the renewed access to the Chinese market, reinforcing its strategy to strengthen ties in the region.

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