China has ordered its airlines not to take any further deliveries of Boeing (BA) planes as part of an escalated trade war ignited by US President Donald Trump, Bloomberg News reported Tuesday, citing people familiar with the matter.
The Chinese government has also asked that its carriers halt any purchases of aircraft-related equipment and parts from US firms, the unnamed sources told the news outlet. Beijing is also contemplating ways to help airlines that lease Boeing aircraft and are facing higher costs, according to the report.
About 10 Boeing 737 Max jet are preparing to enter Chinese fleets, Bloomberg reported, citing Aviation Flights Group data.
Boeing and the Civil Aviation Administration of China did not immediately reply to MT Newswires' requests for comment.
The plane maker's shares were down 2.8% in recent premarket activity.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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