China Southern Halts Boeing 787-8 Fleet Sale Amid Rising US-China Trade Tensions
China Southern Airlines has suspended plans to sell its fleet of ten Boeing 787-8 Dreamliners, citing growing uncertainty over future aircraft deliveries caused by the escalating trade conflict between China and the United States.
Earlier this month, the Guangzhou-based carrier had formally listed the 787-8s for sale on the Shanghai United Assets and Equity Exchange, signaling its intention to transition away from the smaller widebody jets. However, a sudden deterioration in bilateral trade relations, including China’s imposition of 125% retaliatory tariffs on US-made goods, has significantly disrupted the airline’s fleet strategy.
In an April 11 regulatory filing, China Southern Airlines confirmed it had suspended the sale of the B787-8s, citing “the existence of matters affecting property rights transactions.” This vague language underscores the broader uncertainty facing the aviation industry amid tit-for-tat tariffs and political friction.
Tariffs Undermine Aircraft Replacement Plans
China Southern had intended to replace its 787-8s with larger widebody aircraft to boost capacity on its long-haul international routes. However, the government’s recent decision to impose high import duties on US-manufactured aircraft and aviation parts has made it increasingly impractical to proceed with any near-term purchases from Boeing.
The decision comes just days after the United States imposed 145% tariffs on Chinese-manufactured goods, prompting swift retaliation from Beijing. The new Chinese tariffs would effectively more than double the cost of acquiring Boeing aircraft, discouraging local airlines from moving forward with planned deliveries.
According to Bloomberg, on April 15, 2025, the Chinese government instructed domestic airlines to pause all pending Boeing aircraft deliveries, as well as cease procurement of aircraft-related equipment and parts from US suppliers. This directive has injected further volatility into Boeing’s order book and casts doubt on existing delivery timelines.
Boeing Orders in Limbo
China Southern Airlines currently has 34 737-8 MAX aircraft on order from Boeing, along with 75 Airbus narrowbody jets in the pipeline. Boeing, meanwhile, has around ten aircraft ready for delivery to various Chinese carriers, including two earmarked for China Southern. It remains unclear if these aircraft will be accepted or delayed indefinitely due to the shifting regulatory and economic environment.
In total, Chinese carriers have 137 Boeing aircraft on order, according to ch-aviation fleet data. The latest developments threaten to stall this pipeline as trade tensions continue to rise.
Strategic Pause or Long-Term Shift?
While the current suspension of the 787-8 sale is framed as temporary, it reflects a wider reassessment of fleet strategies by Chinese airlines. Faced with unpredictable trade policies and ballooning costs, airlines like China Southern are now reevaluating their dependency on US aircraft manufacturers.
The move could benefit rival Airbus, which has steadily expanded its market share in China and remains unaffected by the ongoing tariff war. As long as geopolitical tensions persist, Boeing may continue to face significant headwinds in one of its most critical international markets.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com