- Westinghouse and Emerson Affected by License Freeze.
- Commerce Dept. Reviews Strategic Exports Amid Rising Tensions.
- GE Aerospace Blocked from Shipping Jet Engines to COMAC.
The U.S. government has put a stop to licenses that previously allowed American companies to export parts and equipment for nuclear power plants to China. This move, announced by the U.S. Department of Commerce, affects crucial components that are vital for the operation and upkeep of Chinese nuclear facilities, reports Marine Insight.
Suspensions Impact Major Industry Players
While the Department of Commerce hasn’t released a detailed public statement about these nuclear-specific suspensions, a spokesperson did confirm on May 28 that strategic exports to China are currently under review. Consequently, some existing licenses have already been suspended, and others are now subject to new licensing requirements.
Industry insiders estimate that the suspended licenses could represent hundreds of millions of dollars in trade. Companies impacted include major U.S. nuclear suppliers like Westinghouse and Emerson. Westinghouse is known for providing technology for over 400 nuclear reactors globally, while Emerson specialises in precision measurement tools. Both companies chose not to comment on the situation.
Broader Restrictions Target Aerospace and Energy Sectors
The export restrictions extend beyond just the nuclear sector. The Commerce Department has also halted shipments from a hydraulic fluid supplier, GE Aerospace, along with companies exporting ethane and butane to China. GE’s suspended license specifically blocks jet engine shipments to China’s state-owned aircraft manufacturer, COMAC.
At the same time, energy companies are experiencing disruptions as well. Houston-based Enterprise Product Partners has confirmed delays in emergency requests for three ethane cargoes (totalling 2.2 million barrels) to China. Although a separate butane license requirement imposed on May 23 was later lifted, Dallas-based Energy Transfer reported that new licensing demands for ethane exports are still in effect. The company mentioned that it plans to seek emergency clearance.
Worsening U.S.–China Trade Relations Behind Restrictions
A fresh wave of restrictions has emerged alongside a noticeable decline in U.S.–China trade discussions. Although both nations agreed on May 12 to hit the pause button on their tariff spat for 90 days, tensions have only ramped up since then.
The U.S. has accused China of failing to uphold its commitments regarding rare earth materials, while China has retaliated by claiming the U.S. is weaponising its export controls. The situation escalated further when the U.S. cautioned that using Huawei’s Ascend AI chips on a global scale could breach U.S. regulations.
Uncertain Future for Nuclear and Trade Relations
It’s still uncertain whether a recent phone conversation between President Joe Biden and Chinese President Xi Jinping will pave the way for a resolution concerning the nuclear export freeze or other licensing matters.
This freeze highlights the increasing friction between these two global giants, as critical sectors like energy, aerospace, and nuclear technology get caught up in the web of geopolitical tensions.
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Source: Marine Insight
