US Slows Airplane Parts Exports to China Amid Trade Talks

Commerce Department Slows Airplane Part Exports to China

The United States Commerce Department has slowed export licensing for commercial airplane parts bound for China, leveraging the country’s dependence on American aviation suppliers as trade negotiations continue, Reuters reported on October 1. This administrative tightening aims to secure leverage for Washington as officials attempt to loosen Beijing’s grip on rare earth minerals essential for American vehicle manufacturing, chipmaking, and aerospace industries.

Deploying Supply Chain Controls in High-Stakes Trade Talks

Trade discussions between the world’s two largest economies have entered a phase following meetings in September in New York and Washington. With Chinese President Xi Jinping visiting Washington last week, both nations extended a trade truce set to expire on November 10, giving negotiators until January 10, 2027, to resolve issues over agricultural trade, artificial intelligence, and access to rare earth minerals. As these talks progress, the administration has deployed export controls as an economic instrument.

The slowdown in shipments has manifested through multiple channels. Along with slowing down export approvals for aircraft components lately, officials at the Commerce Department have shown interest in creating an export rule that would simplify the process of limiting items like landing gear and other aviation components. A draft version included a new licensing requirement on aviation hydraulic fluid shipped by American suppliers such as ExxonMobil. In addition, the Commerce Department has restricted the volume of licensed components sent to COMAC, China’s state-owned aircraft manufacturer, to prevent the business from building up an inventory.

Prior Friction and the Fight Over Boeing Spare Parts

The friction over commercial aviation components follows a heated tug of war over parts last year that prompted President Donald Trump to say the U.S. could impose export controls on Boeing plane parts in response to Chinese export limits on rare earth minerals. While the aerospace sector has largely been unscathed by tariffs, supply chains remain strained by geopolitical tensions. Producers of thermal coating sprays used to protect jet engines continue to struggle with Chinese controls of rare earth materials that have led to delays.

Amid these rising anxieties, China has sought several years’ worth of spare parts for 200 Boeing jets it agreed to purchase last spring, in what would be the American planemaker’s first major deal with Chinese carriers in nearly a decade. Yet, American authorities have held back on granting assurances, viewing the components as a strategic tool to extract future compromises. A Boeing spokesperson emphasized that the company is committed to supporting Chinese airlines with the parts and services they need as they have done for decades.

Silence From Officials as January Deadline Approaches

Neither the White House nor the Commerce Department immediately responded to requests for comment regarding the export adjustments, and the Chinese embassy in Washington did not immediately respond. Following previous export restrictions enacted last year, an embassy spokesperson accused the U.S. of abusing export controls. With the trade truce holding until January 10, 2027, the ultimate trajectory of commercial aviation exports remains tied to whether negotiators can reach a broader economic accord.

More on this story: US and China Buy Time With Trade Truce as Strategic Rivalry Persists