Boeing Co. (NYSE: BA) has again been in the center of a geopolitical storm. As China was allegedly suspending airplane purchases from the U.S. aircraft manufacturer, Boeing shares closed April 16, 2025, at $155.52, down $3.81 or 2.39%. In pre-market trading, the stock fell a little further to $155.50. Even with this decline, the experts believe there is no cause for alarm for long-term investors.
At the core of the crisis is the simmering trade conflict between China and the U.S. Beijing’s latest action stalls Boeing jet deliveries, a move that may seem to be debilitating. But the experts say it could actually create new opportunities for Boeing in the short term.
1. Airbus Alone Can’t Handle the Demand
Although China might be switching its preference to European competitor Airbus, it’s not likely that Airbus can meet all of the country’s demand for commercial aircraft. Both Boeing and Airbus have been working at production limitations, not deficits in demand. That is, even if China wishes to depend more on Airbus, supply constraints will ultimately necessitate a balanced procurement strategy.
China accounts for about 15% to 20% of the world’s demand for large commercial aircraft, but the demand will still have to be satisfied by both producers in the long term.
2. Boeing Can Reallocate Inventory
Boeing planes are in great demand globally. Even if China temporarily withdraws, Boeing can redirect jets to other emerging markets like India. Only 6% of Boeing’s backlog involves Chinese carriers, Citi analysts said. Boeing had 55 737-8s in stock at the close of 2024 — some of which were originally destined for China or India. Boeing might be able to resell those airplanes at higher prices elsewhere, which would help its bottom line.
3. Boeing Is Not Reaching for China’s Manufacturing
Commercial aerospace is not like manufacturing of electronics or clothing, to which it would have become heavily addicted. Truly, most components of high value for jets — engines, avionics, and control systems — are built in the United States and Europe. If Beijing ceases importing U.S. components, Beijing will be freezing its own C919 program in place, a program that itself remains highly reliant on Western manufacturers.
The Bigger Picture
While Boeing’s shares are down some 12% so far this year, the company continues to maintain a strong position globally. It has 6,319 unfulfilled airplane orders globally — with only 130 related to Chinese buyers. While China’s action hurts, it won’t likely do long-term damage.
There are risks, naturally. Since 2020, Airbus has taken 364 Chinese aircraft orders versus only 28 for Boeing. If these trends persist, Boeing may lose more ground in Asia. But with China’s dependence on U.S. components and global supply shortages, Boeing still has considerable leverage.
Short-term fluctuations are to be anticipated, but Boeing’s strategic value to the U.S. and worldwide aviation makes it a robust competitor. For the time being, investors should observe developments — but not panic.
