US has parts for Boeing, China has rare earths: How Trump gains new leverage in trade talks | Today’s news
The Trump administration is taking steps to tighten U.S. exports of aircraft parts to China, seeking to use Beijing’s reliance on U.S. aerospace suppliers as leverage in broader trade talks, Reuters reported, citing people familiar with the matter.
The moves come as Washington seeks better access to Chinese supplies of rare earth minerals that are critical to industries including automobiles, semiconductors and aerospace.
According to Reuters, the U.S. Department of Commerce has slowed the approval of export licenses for aircraft parts destined for China in recent weeks. Officials are also considering new rules that could make it easier to limit shipments of landing gear and other aircraft components.
The US tightens controls on aircraft components
Reuters, citing two people familiar with the matter, said trade officials had expressed interest in an export regulation that would ease restrictions on aircraft parts shipped to China.
According to one of the sources, the draft version of the regulation included a proposed licensing requirement for aviation hydraulic fluid supplied by US companies such as ExxonMobil.
The Commerce Department is also limiting the number of parts licensed for shipment to China’s state-owned aircraft maker COMAC, Reuters reported. The measure is intended to prevent the company from building large inventories of US-made components.
The news outlet said the Commerce Department and the White House did not immediately respond to requests for comment. The Chinese embassy in Washington also reportedly did not immediately respond.
China is looking for spare parts for 200 Boeings
The restrictions could have ramifications for Chinese airlines and Boeing, as China sought several years’ worth of spare parts for about 200 Boeing planes it agreed to buy last spring, according to sources cited by Reuters.
The potential deal would represent Boeing’s first major aircraft deal with a Chinese carrier in nearly a decade.
But the U.S. has been reluctant to provide guarantees on spare parts, with officials seeing access to components as potential leverage to secure future concessions from Beijing, the sources said.
It remains unclear where China’s demand for additional spare parts currently stands.
Boeing said it remains committed to supporting Chinese airlines while complying with US export rules.
“In line with US export requirements, Boeing is committed to supporting Chinese airlines with the parts and services they need, as we have for decades,” a Boeing spokesman told Reuters.
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Rare earths at center of US-China trade talks
The aviation measures come at a time when rare earth minerals remain a major point of contention between Washington and Beijing.
China dominates important parts of the global rare earth supply chain, while the minerals are used in a wide range of products and technologies, including vehicles, chips and aerospace equipment.
Washington’s reported efforts to curtail air deliveries illustrate the two countries’ broader interdependence on critical supply chains. While China exerts influence through its control of rare earth materials, US aerospace suppliers play an important role in supporting China’s commercial aviation.
Trump-Xi trade truce awaits tougher negotiations
The reported aviation restrictions come shortly after US President Donald Trump and Chinese President Xi Jinping met in Washington.
The two countries agreed to cut tariffs on a range of goods and extend a trade truce set to expire on November 10. The extension gives negotiators until January 10, 2027, to address more complex economic issues.
Reuters noted that makers of thermally applied sprays used to protect jet engines continue to face difficulties over China’s control of rare earth materials, contributing to the delays.
The latest US moves suggest that aviation supply chains could become another sticking point as Washington and Beijing negotiate over rare earths, tariffs, technology and other areas of economic competition.
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