Taiwan’s China Airlines Commits to Boeing After Mainland China Distances

Boeing (NYSE: BA) received a welcome boost on Thursday when Taiwan’s China Airlines confirmed a significant order for 14 Boeing 777X aircraft, coming just weeks after mainland China ordered its airlines to halt Boeing deliveries amid escalating trade tensions between the U.S. and China.

Taiwan Order Provides Relief Amid China’s Boeing Boycott

Taiwan’s China Airlines officially placed an order for 14 Boeing 777X aircraft on Thursday, including 10 Boeing 777-9 passenger planes and four Boeing 777-8 freighter planes. The airline also secured options for five additional 777-9s and four 777-8 freighters, with deliveries scheduled to begin in 2029.

The deal, valued at approximately $11.9 billion at list prices, provides Boeing with a critical win in Asia after a significant setback from mainland China. In April, Bloomberg News reported that China had ordered its airlines to suspend deliveries of Boeing jets in direct response to the U.S. imposition of 145% tariffs on Chinese goods.

This suspension impacts significant planned deliveries to China’s top three airlines – Air China, China Eastern Airlines, and China Southern Airlines – which collectively had planned to take delivery of 179 Boeing planes between 2025 and 2027.

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Global Aerospace Industry Caught in Trade War Crossfire

The diverging approaches of Taiwan and mainland China toward Boeing illustrate how the aerospace industry is becoming a key battleground in escalating trade tensions. China’s halt on Boeing deliveries is part of a broader pattern of retaliatory measures, including Beijing’s decision to hike levies on U.S. imports to 125% last month.

These actions have significant implications for Boeing, which considers China one of its largest growth markets, where European rival Airbus already holds a dominant position. Industry analysts note that while a short-term halt in Chinese deliveries wouldn’t severely impact Boeing since the planes could be redirected to other airlines, the long-term strategic implications are concerning.

China has also reportedly asked its carriers to halt purchases of aircraft-related equipment and parts from U.S. companies, potentially disrupting global aerospace supply chains. Meanwhile, the UK is expected to announce a $10 billion Boeing purchase, according to U.S. Commerce Secretary Gina Raimondo, suggesting other nations may be looking to balance these tensions.

Boeing’s Position in the Cross-Strait Balancing Act

Taiwan’s decision to proceed with its Boeing order, originally announced in December, comes at a politically sensitive time as the self-governing island navigates its complex relationship with mainland China while maintaining strong ties with the United States.

The order effectively positions Taiwan’s flag carrier as supporting American aerospace manufacturing while mainland Chinese carriers are being directed to avoid U.S.-made aircraft. For Boeing, which is still recovering from multiple crises including a labor strike, enhanced regulatory scrutiny following the mid-air door panel blowout on a MAX 9 jet last year, and persistent supply chain disruptions, orders from Taiwan and potentially the UK provide crucial support.

BA Stock Brief

Boeing shares are trading at $194.37, up $8.81 (4.75%) as of 12:21 PM EDT on Thursday, significantly outperforming the broader market. The stock opened at $186.76 after closing at $185.56 the previous day and has traded in a range of $186.22 to $194.73 today. Trading volume is active at 9,024,719 shares, slightly above the average volume of 8,853,065 shares. The company’s market capitalization currently stands at $146.61 billion.

Boeing’s share price has been gaining momentum on a series of positive news including the Taiwan order and reports of an upcoming $10 billion deal with a UK airline. Despite recent gains, Boeing’s stock remains well below its 52-week high of $196.95, though it has recovered substantially from its 52-week low of $129.88.

Year-to-date, Boeing shares have returned 9.85%, outperforming the S&P 500’s decline of 2.87%. However, its 5-year return of 45.71% significantly lags the S&P 500’s 94.99% gain over the same period. Analyst sentiment remains cautiously optimistic, with 14 Buy ratings, 15 Hold ratings, and no Sell ratings in May, and an average price target of $196.79.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.