The U.S. Department of Commerce has suspended export licenses for American nuclear equipment suppliers selling to Chinese power plants, intensifying the ongoing trade conflict between the two nations. The move affects major companies like Westinghouse and Emerson, whose technologies are integral to nuclear reactors worldwide.
This decision comes after a temporary truce agreed upon on May 12 to roll back tariffs for 90 days quickly unraveled. The U.S. accused China of reneging on terms related to rare earth elements, while China criticized the U.S. for “abusing export control measures,” particularly concerning the use of Huawei Ascend AI chips.
According to sources familiar with the matter, the suspended licenses impact businesses worth hundreds of millions of dollars. In addition to nuclear equipment, the U.S. has imposed new restrictions on other sectors, including aerospace components and energy exports. For instance, GE Aerospace faced license suspensions for jet engines intended for China’s COMAC aircraft, and Houston-based Enterprise Product Partners reported delays in obtaining licenses to ship ethane to China.
These measures coincide with China’s own export restrictions on critical metals, which have disrupted supply chains for manufacturers globally, notably affecting America’s Big Three automakers. The reciprocal nature of these trade barriers underscores the escalating tensions and the strategic importance both nations place on controlling key industrial sectors.
