The Trump administration has suspended some sales to China of critical U.S. technologies, including those related to jet engines, semiconductors and certain chemicals. The move is a response to China’s recent restrictions on exports of critical minerals to the United States, a decision by Beijing that has threatened to cripple U.S. company supply chains, according to two people familiar with the matter.
The new limits are pushing the world’s largest economies a step closer toward supply chain warfare, as Washington and Beijing try to flex their power over essential economic components in an attempt to gain the upper hand in an intensifying trade conflict.
The standoff could have significant implications for companies that depend on foreign technologies, including makers of airplanes, robots cars and semiconductors.
In April, China suspended exports of a range of critical minerals and magnets, which are essential for automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The Chinese government said it had halted the shipments while drafting a new regulatory system.
Beijing’s moves were in response to Mr. Trump’s decision to sharply increase tariffs on China in early April, to a minimum of 145 percent.
One person familiar with the matter, who declined to be named to discuss private conversations, said the Commerce Department had suspended some licenses that allowed American companies to sell products and technology to COMAC, a Chinese state-owned aerospace manufacturer, in order to develop its C919 aircraft.
The Commerce Department did not immediately respond for comment.
The C919, a plane comparable in size to the Boeing 737 or the Airbus A320, carried paying passengers for the first time in 2023. Many of the plane’s parts, including its engines and components necessary to power and control the aircraft, come from U.S. and European suppliers.
China is a long way away from producing enough planes to meet its needs and, analysts say, will continue to be dependent on Boeing and Airbus for planes, and companies like GE Aerospace for jet engines, for many years to come. China also lags behind the United States in certain areas of semiconductor technology.
A representative for GE did not immediately respond to a request for comment.
In recent days, the Chinese have restarted some shipments of rare earth magnets, but they have been limited, one of the people said. Companies remain concerned about their access to critical Chinese supplies.
The Financial Times earlier reported that the Trump administration was restricting exports of chip design software to China.
Niraj Chokshi contributed reporting.
Ana Swanson covers trade and international economics for The Times and is based in Washington. She has been a journalist for more than a decade.
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