Anabelle Colaco
07 Jul 2025, 19:40 GMT+10
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person familiar with the matter told Reuters, signaling a potential softening in trade tensions that have escalated under President Donald Trump's latest round of tariffs and restrictions.
The license reinstatement comes after several weeks of curbs affecting a range of exports, including high-value aerospace components. GE was officially notified this week that it could restart engine deliveries.
The move follows other U.S. concessions this week, including lifting restrictions on chip design software and ethane producers. While temporary, these steps suggest ongoing dialogue between the two countries despite their sharp trade rivalry.
GE Aerospace did not respond to a request for comment, and the Commerce Department, which issued the notification, also declined to comment.
The affected licenses include engines sold to China's state-owned aerospace manufacturer COMAC, which is developing aircraft to compete with Airbus (AIR.PA) and Boeing (BA.N) on the global stage.
A Chinese Ministry of Commerce spokesperson welcomed the development:
"Dialogue and cooperation are the right path forward, while threats and coercion lead nowhere," they said. "The U.S. should continue to meet China halfway."
COMAC and the Chinese embassy in Washington did not respond to requests for comment.
The initial restrictions were introduced after China imposed export controls on rare earths and magnets, key materials in global technology supply chains. That move was in retaliation for a new wave of U.S. tariffs announced by President Trump earlier this year.
The license suspension lifted for GE covers its LEAP-1C engine, made for COMAC's C919 single-aisle aircraft, and its CF34 engine, used in the C909 regional jet, the person familiar with the matter said. The LEAP-1C is produced via a joint venture between GE Aerospace and France's Safran.
Although the C919 is manufactured in China, many of its critical parts are sourced from overseas suppliers.
At least one other aerospace company also had its license suspensions lifted on Thursday, another source said, without naming the firm.
Honeywell, which supplies COMAC with an auxiliary power unit, flight control system, wheels, brakes, and navigation equipment, did not respond to a request for comment.
Collins Aerospace, a unit of RTX, also declined to comment on its licensing status.
Recent U.S. export license suspensions have extended to the nuclear energy sector as well, affecting companies such as Westinghouse and Emerson. These actions are part of a broader effort by the Trump administration to reassert leverage over Chinese tech supply chains.
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