Beijing has ordered its airlines to stop purchasing aircraft and parts from the American manufacturer. The decision is a response to China’s recent 125% tariffs on US imports, which effectively made Boeing’s purchases unprofitable.
Boeing shares fell 4.6% after Bloomberg reported the news.
China previously accounted for up to 20% of global aircraft demand and nearly a quarter of Boeing’s deliveries. However, no significant contracts have been signed with the Chinese side since the trade conflict began.
