Analysts have emphasized that Hong Kong should not follow mainland China’s decision to reject aircraft deliveries from Boeing amid ongoing tensions in the US-China trade war. Experts argue that such a move would undermine the city’s status as a global aviation hub and disrupt the expansion plans of local airlines.
Last week, Boeing CEO Kelly Ortberg confirmed that China had instructed its airlines to reject up to 50 aircraft from the American aerospace giant. This prompted concerns that Hong Kong’s carriers might adopt a similar stance. However, analysts argue that given Hong Kong’s unique position as a free port, there is no need for the city to mirror this policy.
Cathay Pacific Airways, Hong Kong’s flagship airline, is set to receive its first Boeing 777-9 aircraft in 2027 or later. CEO Ronald Lam Siu-por declined to comment on the delivery schedule when asked. In recent years, however, Cathay has shown a stronger preference for aircraft from European manufacturer Airbus. The airline also announced a HK$100 billion (US$12.9 billion) investment plan in 2024, which includes purchasing 30 Airbus aircraft in addition to a previous order of 70.
Greater Bay Airlines, another Hong Kong-based carrier, plans to add 15 Boeing 737-9 aircraft to its fleet by 2027. The airline stated it would closely monitor the situation as the trade tensions unfold.
Despite Beijing’s retaliatory tariffs on American goods, which have made the cost of US-made Boeing planes prohibitively high for Chinese carriers, US-based aviation analyst Jason Li Hanming argued that Hong Kong should not follow the mainland’s approach. Li warned that imposing tariffs or rejecting Boeing aircraft would negatively impact the city’s competitiveness in the global aviation market, further diminishing its status as a key logistics and business center in Asia.
Law Cheung-kwok, a senior adviser at the Chinese University of Hong Kong’s Aviation Policy and Research Centre, agreed that it would be unwise for local airlines to change their delivery plans. He emphasized that aircraft delivery schedules are part of long-term expansion strategies and are not easily adjusted.
The broader context of the US-China trade war includes significant tariff increases, with former President Donald Trump imposing cumulative tariffs of 145% on Chinese goods, which rose to 245% on certain items. Beijing retaliated by raising tariffs on US goods to 125%, and the White House introduced additional port fees for Chinese-owned and operated vessels.
Li noted that mainland carriers facing delivery delays due to the Boeing 737 Max issues in 2019 and 2022 were able to negotiate with the company for alternative solutions, such as converting orders to Boeing 777 freighters. He suggested that the current situation would similarly allow for adjustments, with some orders being redirected to other international clients.
Professor Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at Chinese University, also expressed confidence that Hong Kong would not follow China’s lead. He pointed to the city’s historical approach to US tariffs, which has often differed from China’s retaliatory actions. Chong stressed that maintaining Hong Kong’s free-trade status is crucial for its long-term economic health, particularly in ensuring access to American goods not subject to tariffs in China.
While Beijing’s rejection of Boeing deliveries sends a clear message to the US, Chong believes Hong Kong’s commitment to free trade and its separate status as a World Trade Organization member will shield it from similar disruptions in the aviation sector.
Related Topics:
