China delaying Boeing airplane deliveries in potential blow to US relations

China's largest airline is holding off on deliveries of Boeing's 737 Max airplanes over safety concerns, The Wall Street Journal reported Monday. This development could throw a new wrench in the business dealings between China and the American airplane manufacturer.

The state-owned China Southern Airlines was ready to receive a large shipment of 737 Max planes "as early as January," sources told the Journal. However, the airline is now postponing those deliveries to allow for additional safety inspections of the planes. China's government aviation regulator has also called for all of the nation's airlines to conduct "precautionary safety inspections" on their existing 737 Max planes, the Journal reported.

The renewed delay comes as fresh scrutiny is being placed on Boeing after the door plug on an Alaska Airlines flight blew off in midair on Jan. 5, resulting in a nationwide grounding of 737 Max planes across the United States. The Alaska flight was being operated by a variant, the 737 Max 9, which isn't part of the fleet being delivered to China Southern and is not currently used by any Chinese airlines.

An extended delay could have wide-ranging implications for both the Chinese and American aviation business. China froze all deliveries of Boeing airplanes and grounded its existing models in 2019 following a pair of deadly crashes involving the 737 Max. China began flying them again at the beginning of last year, but only received delivery of a new Boeing plane, a 787 Dreamliner, last month, Business Insider reported.

The delay could prove costly for Boeing, which has said itself that "China will account for 20% of the world's airplane demand through 2042," adding that its commercial fleet will "generate demand for $675 billion in aviation services." As a result, resuming sales of the 737 Max is a key element of Boeing's business plan in China.