US Halts Some Tech Sales to China Amid Trade Tensions

by Wallstreet Updates
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The United States has stopped some sales of critical technology products to China. This includes parts related to jet engines supplied to COMAC, a Chinese state-owned aircraft manufacturer. The move follows China’s recent restrictions on key mineral exports to the US.

The US Commerce Department has suspended certain licenses that allowed American companies to provide technology and products to COMAC for its C919 aircraft development. This information comes from sources familiar with the matter. Neither the Commerce Department nor the Chinese Embassy in Washington has responded to requests for comment.

COMAC’s C919 plane depends heavily on overseas components, including the LEAP engines made by GE Aerospace and Safran, a French engine maker. The LEAP engine is an important part of the aircraft. GE Aerospace has not immediately commented on the suspension.

The C919, designed to compete with Airbus and Boeing planes, started flying within China in 2023 after gaining safety certification in 2022. The aircraft currently operates only domestic flights inside China and Hong Kong.

The LEAP engines were licensed to GE by the US government under the Trump administration in 2014. Tensions between the US and China have increased recently, especially after China restricted exports of minerals essential for US industries. These minerals are vital for making high-tech and military products.

This move by the US marks a new phase in ongoing trade and technology tensions between the two countries. It aims to limit China’s access to advanced technology in sensitive areas like aerospace. The suspension could slow China’s goal to build competitive commercial aircraft and affect US companies supplying parts.

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