Ongoing China-US trade negotiations continue to create uncertainty for Boeing's order deliveries and operations.

Sources reveal that Liu Qing, who served as Boeing China President since 2023, recently retired. Carol Shen, who previously worked in Boeing's commercial aircraft sales division, has been appointed as Acting Managing Director, a newly created position within the company.

Following the retirement announcement of former Boeing China President Sherry Carbary in 2023, Liu Qing, a Chinese-American born in 1957, was appointed to lead Boeing's China operations.

Prior to his role as Boeing China President, Liu Qing headed Boeing's government relations team in China and previously held leadership positions at Ford Motor Company, Chrysler Corporation, and DaimlerChrysler. Among the five China presidents appointed by Boeing over the past two decades, three were transferred from headquarters or other regions with limited prior experience in China, making Liu Qing notably more familiar with the Chinese market among Boeing's management team.

During Liu Qing's tenure as Boeing China President, the company faced regulatory crises and significant strike impacts from the United States, which temporarily affected commercial aircraft production and deliveries. With management changes at Boeing headquarters in 2024, the company is now steadily recovering its production capacity.

**Recovery in Deliveries and Orders**

According to Boeing's second quarter 2025 financial report, revenues increased 35% year-over-year to $22.75 billion, driven by a significant rebound in commercial aircraft deliveries. While the company remained unprofitable in the second quarter, the net loss of $612 million represented a substantial improvement from the $1.439 billion loss in the same period last year.

Boeing delivered 150 commercial aircraft in the second quarter, significantly higher than the 93 delivered in the same period last year, marking the highest second-quarter delivery volume since 2018.

Since the Alaska Airlines Boeing 737 MAX 9 door plug incident in January 2024, Boeing's production and delivery operations faced strict scrutiny and restrictions. The current recovery in delivery volumes indicates gradual restoration of production capabilities.

Boeing reported that 737 production increased to 38 aircraft per month in the second quarter, with expectations to reach 42 aircraft per month later this year. Wide-body 787 production also increased from 5 to 7 aircraft per month.

Beyond production recovery, market confidence in Boeing appears to be returning. The company secured 455 net aircraft orders in the second quarter, including major orders from Qatar Airways for 120 Boeing 787 Dreamliners and 30 Boeing 777-9 aircraft, as well as British Airways' order for 32 Boeing 787-10 aircraft.

**Tariff and Supply Chain Challenges**

However, the unresolved China-US trade negotiations continue to create uncertainty for Boeing's orders and deliveries.

China represents Boeing's largest single overseas market. At the peak of business in 2018, Boeing delivered one-quarter of its new aircraft to China.

In April this year, under reciprocal China-US tariffs, importing US aircraft required an additional 125% tax rate, temporarily causing Chinese airlines to suspend Boeing aircraft deliveries until gradual resumption in June.

Sources indicate that during the ongoing "buffer period" of China-US tariff negotiations, additional tariffs on aircraft and certain engine components have been exempted, meaning Chinese airlines currently pay taxes at previous rates: 5% for narrow-body aircraft and 1% for wide-body aircraft. The final tax rates from future China-US negotiations will determine Chinese airlines' willingness to purchase and receive Boeing aircraft.

Notably, when Airbus disclosed its first-half financial results, the company revealed that a recent agreement between the EU and US would restore zero tariffs on commercial aircraft, allowing the company's future performance guidance to exclude tariff impacts. However, Airbus mentioned continued challenges from engine and supply chain issues, creating pressure on aircraft production capacity increases.

Boeing faces similar challenges. During the pandemic, numerous airlines grounded flights, causing dramatic decreases in Boeing and Airbus aircraft deliveries. Both aircraft manufacturers and component suppliers were forced to implement layoffs of up to 50%. Post-pandemic recovery has proven difficult, with rehiring and training new personnel requiring significant time. Consequently, both component manufacturers and aircraft manufacturers face delivery delays.

During the International Air Transport Association annual meeting in June, IATA Director General Willie Walsh told reporters that current global aircraft backlog exceeds 17,000 units, significantly higher than the pre-pandemic 10,000-11,000 units and double the average backlog from 2013-2019, potentially extending delivery times to 14 years. "Supply chain issues are expected to persist through 2025 and possibly until the end of the 2020s, with potential for further downward revisions."

Boeing's second-quarter financial report shows total backlog orders worth $619 billion at the end of the first half, including commercial aircraft backlog exceeding 5,900 units valued at $522 billion.