US Suspends Nuclear Equipment Licenses for China Amid Trade Tensions
WASHINGTON: The United States has recently paused the licenses that allow nuclear equipment suppliers to sell to power plants in China, as tensions rise in the ongoing trade war between the two nations. This action comes from the US Department of Commerce and impacts the export licenses for parts and equipment linked to nuclear power facilities.
These suspensions are part of broader restrictions that have hit various companies in the past two weeks, shifting the trade conflict from tariff negotiations to substantial challenges in each country’s supply chains. The outcome of a recent conversation between US President Donald Trump and Chinese President Xi Jinping remains uncertain regarding these suspensions.
On May 12, the US and China had an agreement to roll back significant tariffs for a period of 90 days, but relations soured quickly. The US accused China of not fulfilling commitments related to rare earth elements, while China countered by claiming that the US was misusing export control rules, particularly concerning the use of Huawei’s AI chips worldwide. Following Thursday’s call, further discussions on major issues are anticipated.
The US Department of Commerce has not commented on the specific nuclear equipment restrictions. On May 28, a spokesperson indicated that the department was assessing exports deemed strategically significant for China. "In some instances, we have suspended existing export licenses or added extra licensing conditions during this review," the spokesperson stated. The Chinese Embassy in Washington has yet to respond to inquiries about these developments.
Key US nuclear suppliers include Westinghouse, which operates over 400 reactors globally, and Emerson, known for its measurement tools in the nuclear sector. However, both companies did not provide comments when approached for their take on the situation.
The licenses that have been suspended represent business transactions worth millions of dollars, according to insiders. These actions also align with China’s new restrictions on essential metals, which threaten the global supply chains for manufacturers, particularly affecting major American automakers.
While it remains unclear if the recent license suspensions are directly related to the trade war or when they might be reinstated, sources report that a series of new restrictions have emerged recently, including license requirements for a hydraulic fluids supplier targeting the Chinese market.
Additionally, companies like GE Aerospace have faced new license suspensions regarding jet engines for China’s COMAC aircraft. The US has also introduced licensing requirements for shipping ethane to China. Houston-based Enterprise Product Partners announced that its emergency requests for three ethane cargoes totaling around 2.2 million barrels had not been approved. Although a requirement for a license to ship butane was retracted, Energy Transfer, based in Dallas, was informed about the new ethane licensing requirement and intends to apply for emergency clearance.
Furthermore, other sectors, including firms providing electronic design automation software such as Cadence Design Systems, have also been impacted by these new restrictions.
