Amid the escalating trade war between the United States and China, four informed sources have disclosed to Reuters that the U.S. has recently suspended licenses for nuclear equipment suppliers to sell equipment to Chinese nuclear power plants.
These sources mentioned that the suspension, issued by the U.S. Department of Commerce, affects the export permits for components and equipment used in nuclear power plants.
According to Reuters, U.S. nuclear equipment suppliers include Westinghouse and Emerson. Westinghouse’s technology is utilized in over 400 nuclear reactors worldwide, while Emerson provides measurement and other tools for the nuclear industry. Both companies have not responded to requests for comment. The U.S. Department of Commerce has not provided any comment on the restrictions on nuclear equipment exports. The Chinese Embassy in Washington has not immediately responded to requests for comment.
On May 28th, a spokesperson for the U.S. Department of Commerce stated that the department is reviewing exports to China that hold strategic significance. The spokesperson mentioned in a statement, “In some cases, the Department of Commerce has suspended existing export licenses or imposed additional licensing requirements during the review.”
Two sources indicated that the suspension of export licenses this time has impacted business worth hundreds of millions of dollars. Meanwhile, China’s restrictions on key metals have threatened the supply chains of global manufacturers, especially those of the three major U.S. automakers.
Sources mentioned that in the past two weeks, the U.S. has implemented numerous new restrictions on exports to China, including requiring hydraulic oil suppliers to obtain licenses before selling products to China.
Based on information from sources, other companies whose export licenses have been suspended include GE Aerospace, a subsidiary of General Electric that supplies engines to Chinese commercial aviation.
Over the past two weeks, as the U.S.-China trade war shifted from tariff negotiations to mutual supply chain restrictions, nuclear equipment suppliers have become one of the many companies facing restricted sales. It remains unclear how these export restrictions will be affected by the dialogue between U.S. President Trump and Chinese leader Xi Jinping held on Thursday, June 5th.
Last month, the U.S. and China agreed in Geneva to significantly reduce retaliatory tariffs within 90 days, temporarily halting the trade war. However, the agreement quickly collapsed as the U.S. accused China of violating terms related to rare earth elements, while China accused the U.S. of “misusing export control measures.”
Reuters reported last week that the U.S. now requires companies exporting ethane to China to obtain permits as well. Houston-based energy service company Enterprise Product Partners stated on Wednesday that their urgent request to ship approximately 2.2 million barrels of ethane to China has not yet been approved.
Other industries impacted by new restrictions include companies selling electronic design automation software, such as Cadence Design Systems.