US slows aircraft-part exports to China to gain trade leverage

Key facts

• The US is slowing export licenses for airplane parts to China to gain leverage in trade talks.
• The Commerce Department is considering new regulations for aircraft parts, including hydraulic fluid.
• The US is limiting parts shipments to COMAC to prevent stockpiling.
• China has requested spare parts for 200 Boeing jets, but the US is reluctant to provide guarantees.
• Aerospace has largely been exempt from Trump's tariffs, but faces parts shortages due to geopolitical tensions.

The Trump administration is strategically slowing the export of aircraft parts to China, aiming to leverage China's reliance on US suppliers in ongoing trade negotiations. Sources indicate that the US Department of Commerce has recently reduced export licensing for these vital components and is exploring new regulations that could further restrict shipments, particularly to China's state-owned planemaker, COMAC. This move is intended to increase pressure on Beijing as part of broader efforts to address trade imbalances and secure concessions on issues like rare earth minerals.

While the aerospace sector has largely been spared from previous US tariffs, the industry is experiencing concerns over parts shortages exacerbated by geopolitical tensions. China has reportedly sought several years' worth of spare parts for 200 Boeing jets, but the US has been hesitant to provide guarantees, viewing the parts as potential leverage. Boeing stated its commitment to supporting Chinese airlines in compliance with US export requirements.

US and Chinese officials met in September to discuss economic issues, and the two countries have extended a trade truce until January 10, 2027, to allow negotiators more time to address complex trade matters.