The U.S. government has recently suspended export licenses for nuclear equipment suppliers selling to China’s power plants, according to sources familiar with the situation, marking a significant escalation in the ongoing trade war between the two countries.
These suspensions, issued by the U.S. Department of Commerce, target parts and equipment critical for nuclear power plant operations. The move is part of broader export restrictions imposed over the past two weeks on various companies as Washington shifts from tariff negotiations toward restricting supply chains linked to China.
The suspensions impact major U.S. nuclear equipment suppliers, including Westinghouse—whose technology powers over 400 reactors worldwide—and Emerson, a provider of nuclear industry measurement tools. These restrictions are estimated to affect hundreds of millions of dollars in business.
The U.S. and China had agreed on a 90-day truce on tariffs starting May 12, but tensions quickly resurfaced. The U.S. accuses China of reneging on rare earth element agreements, while China criticizes the U.S. for abusing export controls, notably concerning Huawei’s AI chips. A new round of talks between President Donald Trump and President Xi Jinping was scheduled for June 9 to address these issues.
In addition to nuclear equipment, the U.S. has imposed new export license requirements on hydraulic fluids suppliers, aerospace companies like GE Aerospace (jet engines for China’s COMAC aircraft), and ethane shipments. Houston-based Enterprise Product Partners reported delays in approval for ethane cargoes to China due to the new licensing rules.
China, for its part, insists it is honoring the Geneva agreement and calls on the U.S. to lift its restrictive measures. The Chinese Embassy emphasized that its rare earth export controls follow global norms and are not targeted specifically at any country.
The ongoing export curbs come amid China’s restrictions on critical metals, which have disrupted global supply chains, particularly affecting U.S. automakers. Although China has granted temporary export licenses for rare earths to U.S. automakers, the situation remains volatile.
It remains unclear how long the U.S. export license suspensions will last or whether they will be reversed following diplomatic discussions.