Washington is quietly tightening the flow of commercial aircraft parts to China, turning Beijing's dependence on American aviation suppliers into bargaining power for trade negotiations, Reuters reported on October 1, citing people familiar with the matter.
The move shows how the United States is strengthening its hand in talks even as it works to loosen China's grip on rare earth minerals needed across vehicle manufacturing, chipmaking and aerospace. Two sources told Reuters that the Commerce Department is positioning itself to increase pressure on Beijing should the administration call on it to do so.
A slower licensing pipeline
The slowdown has taken several forms. The Commerce Department slowed export licensing for airplane parts bound for China in recent weeks, two other sources said. Officials have also discussed an export regulation that could make it easier to restrict landing gear and other aircraft parts: a draft version included a new licensing requirement on aviation hydraulic fluid shipped by US suppliers such as ExxonMobil, one person said.
The department has also been limiting the number of parts licensed for shipment to COMAC, China's state-owned planemaker, to keep the company from stockpiling, another source said. The Commerce Department and the White House did not respond to requests for comment, and China's embassy in Washington did not respond either.
Truce extended, leverage retained
The pressure campaign comes days after Chinese President Xi Jinping visited Washington, where the two countries entered a new period of detente: they agreed to reduce tariffs on a range of goods and extended a trade truce set to expire on November 10, giving negotiators until January 10, 2027 to tackle tougher issues, including US access to Chinese rare earths, agricultural trade and artificial intelligence.
Meanwhile, China has sought several years' worth of spare parts for 200 Boeing jets it agreed to purchase last spring — the US planemaker's first major deal with Chinese carriers in nearly a decade. But Washington has been reluctant to provide guarantees, viewing the parts as leverage for future concessions, the sources said. A Boeing spokesperson said the company is committed to supporting Chinese airlines with the parts and services they need, consistent with US export requirements.
Aerospace has largely escaped the tariffs President Donald Trump has imposed across sectors, but the industry has been caught in geopolitical crossfire before. Last year the US imposed new export restrictions on aircraft products, briefly suspending licenses for GE Aerospace jet engines and Honeywell navigation systems for COMAC, before the measures lapsed within weeks. Last October, Trump himself said the US could impose export controls on Boeing plane parts in response to Chinese limits on rare earth exports.
Sources: Reuters
The move shows how the United States is strengthening its hand in talks even as it works to loosen China's grip on rare earth minerals needed across vehicle manufacturing, chipmaking and aerospace. Two sources told Reuters that the Commerce Department is positioning itself to increase pressure on Beijing should the administration call on it to do so.
A slower licensing pipeline
The slowdown has taken several forms. The Commerce Department slowed export licensing for airplane parts bound for China in recent weeks, two other sources said. Officials have also discussed an export regulation that could make it easier to restrict landing gear and other aircraft parts: a draft version included a new licensing requirement on aviation hydraulic fluid shipped by US suppliers such as ExxonMobil, one person said.
The department has also been limiting the number of parts licensed for shipment to COMAC, China's state-owned planemaker, to keep the company from stockpiling, another source said. The Commerce Department and the White House did not respond to requests for comment, and China's embassy in Washington did not respond either.
Truce extended, leverage retained
The pressure campaign comes days after Chinese President Xi Jinping visited Washington, where the two countries entered a new period of detente: they agreed to reduce tariffs on a range of goods and extended a trade truce set to expire on November 10, giving negotiators until January 10, 2027 to tackle tougher issues, including US access to Chinese rare earths, agricultural trade and artificial intelligence.
Meanwhile, China has sought several years' worth of spare parts for 200 Boeing jets it agreed to purchase last spring — the US planemaker's first major deal with Chinese carriers in nearly a decade. But Washington has been reluctant to provide guarantees, viewing the parts as leverage for future concessions, the sources said. A Boeing spokesperson said the company is committed to supporting Chinese airlines with the parts and services they need, consistent with US export requirements.
Aerospace has largely escaped the tariffs President Donald Trump has imposed across sectors, but the industry has been caught in geopolitical crossfire before. Last year the US imposed new export restrictions on aircraft products, briefly suspending licenses for GE Aerospace jet engines and Honeywell navigation systems for COMAC, before the measures lapsed within weeks. Last October, Trump himself said the US could impose export controls on Boeing plane parts in response to Chinese limits on rare earth exports.
Sources: Reuters
