The United States has suspended licenses allowing nuclear equipment suppliers to export parts to Chinese power plants, four sources familiar with the matter revealed, marking another escalation in the ongoing U.S.-China trade war.
According to the sources, the U.S. Department of Commerce halted approvals for components used in nuclear facilities. This move aligns with broader restrictions imposed over the past two weeks as the conflict shifts from tariffs to strategic supply-chain disruptions. The status of these suspensions remains unclear following Thursday’s call between Presidents Trump and Xi Jinping.
Wider Trade War Context
The decision intensifies tensions after a May 12 truce temporarily paused tit-for-tat tariffs. That agreement quickly unraveled, with the U.S. accusing China of reneging on rare earth commitments and China condemning U.S. restrictions on Huawei’s AI chips.
Impacted Companies & Industries
Major U.S. nuclear suppliers like Westinghouse (technology in 400+ global reactors) and Emerson (nuclear measurement tools) face suspended exports worth hundreds of millions of dollars. The Commerce Department confirmed it is “reviewing exports of strategic significance,” adding that some licenses were suspended during this process. Neither the companies nor China’s embassy commented.
Parallel Restrictions
The nuclear suspensions coincide with:
- China’s critical metals export curbs disrupting automakers
- New U.S. license requirements for ethane shipments (blocking Enterprise Product Partners’ 2.2M-barrel cargoes)
- GE Aerospace jet engine license suspensions for China’s COMAC
- Hydraulic fluid and semiconductor software (e.g., Cadence Design Systems) restrictions
Uncertain Future
Commerce Department licenses typically span four years with predefined quantities/values. Sources couldn’t confirm if suspensions were trade-war retaliation or when they might lift. Energy Transfer is now seeking emergency authorization for ethane exports after last-minute policy shifts.