The Trump administration is reportedly slowing approvals for aircraft-part exports to China, using the Asian country’s dependence on U.S. aviation suppliers as leverage in broader trade negotiations.
The Commerce Department has limited licenses for parts shipped to the state-owned Commercial Aircraft Corp. of China, or COMAC, in an effort to prevent stockpiling.
U.S. officials are also weighing tighter export controls covering landing gear and other aircraft components, Reuters reported on Thursday, citing people with knowledge of the matter. A draft proposal reportedly included new licensing requirements for aviation hydraulic fluid supplied by companies including Exxon Mobil Corp. (NYSE:XOM).
Chinese airlines and COMAC still depend heavily on U.S.-made parts for their planes. This applies to aircraft built by Boeing Co. (NYSE:BA) and Airbus as well, according to the report.
White House did not immediately respond to Benzinga’s request for comments.
US-China Deal Eases Tariffs, Boeing Waits
The report comes shortly after President Donald Trump and Chinese President Xi Jinping agreed last week to more favorable tariff treatment for $30 billion of non-sensitive goods moving in each direction.
The agreement also established a bilateral dialogue on advanced artificial intelligence (AI) technology, but aviation-part licensing remains an active pressure point in the U.S.-China relationship.
China has requested several years’ worth of spare parts for 200 Boeing jets purchased last spring, but the U.S. has not guaranteed those supplies.
In September, Boeing CEO Kelly Ortberg downplayed hopes of a big China aircraft order. He clarified that Boeing never received the roughly 200-plane order reported earlier this year; Chinese officials had only signaled they intended to go ahead with purchases. He expects the orders to come in gradually, with individual airlines announcing them.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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