The Trump administration has suspended certain U.S. technology exports to China, restricting the sale of key products such as jet engines, semiconductors, particular chemicals, and machinery, as reported by the New York Times on Wednesday.
The decision comes in reaction to China’s recent limits on exports of essential minerals to the United States, a move by Beijing that poses a risk to U.S. company supply chains, according to two familiar sources.
The escalating dispute over vital supply chains may greatly impact companies reliant on foreign technology, affecting industries such as aerospace, robotics, automotive manufacturing, and semiconductor production.
The U.S. Department of Commerce directed electronic design automation firms, including Cadence, Synopsys, and Siemens EDA, to cease supplying technology to China, The Financial Times reported.
According to Business Standard, the department also revoked particular licenses that permitted U.S. companies to supply products and technology to COMAC (Commercial Aircraft Corporation of China) for the development of its C919 aircraft.
A commerce department official stated that exports deemed strategically significant to China are under review. As part of the process, some existing export licenses have been suspended, and additional licensing requirements have been introduced while the assessment is ongoing.
The temporary halt follows a meeting in Geneva earlier this month between officials from China and the Trump administration, where both nations agreed to temporarily ease tariffs. The U.S. reduced tariffs on Chinese imports from 145% to a minimum of 30%, while China lowered tariffs on American goods from 125% to a minimum of 10%.
The temporary agreement is scheduled to expire in August, providing both sides an opportunity to negotiate a more lasting trade deal. However, if discussions fail, either country could increase tariff rates again, potentially reigniting tensions in the economic relationship.
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