BEIJING - China may be reducing the number of aircraft ordered at Boeing as revenge for the US government scaling up import tariffs. As a result, the Boeing share fell in value shortly after the stock market opening by almost 3 percent.
In addition to canceling orders with Boeing, it is also an option not to import agricultural products and energy from the US anymore. Hu Xijin, editor in chief of the Chinese newspaper Global Times, tweeted that on Monday. He is seen as the mouthpiece of the Communist Party.
China decided earlier today to raise import tariffs on US $ 60 billion. That was a reaction to the decision of the US government last Friday to tax $ 200 billion in Chinese goods.
The two countries seemed to be close to a trade agreement for a long time, but negotiations broke off last week. According to the Americans, China would not make enough concessions to reduce the trade deficit with the US.
If China actually decides to punish Boeing for Trump's policy, then the aircraft manufacturer has a big problem. The Asian country accounts for 15 percent of global aviation and has hundreds of orders placed with Boeing.
Source in Dutch
Hu Xijin 胡锡进 wrote:China hasn’t released countermeasures immediately. I believe the reason is that China is drafting a plan that will have precise effects, making sure it hits the US while minimizing damage to itself.
Hu Xijin 胡锡进 wrote:China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.
This could be quite painful for Boeing, on top of the MAX-woes loosing a major costumer on political grounds which they have no control over.