The United States has recently halted the export licenses for nuclear equipment suppliers slated to sell to power plants in China, according to four people well-acquainted with the matter. This action comes amidst a trade war that has strained relations between the two powerful nations.
This development follows earlier reports that the suspensions were issued by the U.S. Department of Commerce, affecting the export licenses for parts and equipment integral to nuclear power plants. The significance becomes clear when we consider that these suppliers are part of a broad spectrum of businesses whose sales have been curtailed over the past fortnight as the trade war between the U.S. and China escalates.
It remains ambiguous whether a recent interaction between President Donald Trump and Chinese President Xi Jinping would impact these suspensions. Both sides of this issue present compelling arguments. Previously on May 12, both countries agreed to reduce triple digit, tit-for-tat tariffs for 90 days, but this ceasefire quickly deteriorated. The U.S. accused China of reneging on terms related to rare earth elements and China, in turn, accused the U.S. of “abusing export control measures” concerning the use of Huawei Ascend AI chips.
According to reliable sources, the Commerce Department did not issue a comment on the nuclear equipment restrictions. However, on May 28, a spokesperson stated that the department was reviewing exports of strategic significance to China. The evidence suggests that certain export licenses have been suspended or additional prerequisites imposed while the review is ongoing. The Chinese Embassy in Washington has yet to offer its comments.
Reports indicate that among the U.S. nuclear equipment suppliers are industry giants like Westinghouse and Emerson. Both companies, which respectively offer technology used globally in over 400 nuclear reactors and vital measurement tools for the industry, have not responded to requests for comments.
These suspensions impact business worth hundreds of millions of dollars and coincide with Chinese restrictions on critical metals, threatening supply chains for manufacturers worldwide, particularly America’s Big Three automakers.
It remains undetermined whether these new restrictions are tied to the trade war or if and how swiftly they might be reinstated. But many new restrictions on exports to China have been imposed in the last two weeks, including license requirements for a hydraulic fluids supplier for sales to China. Other sectors hit with new restrictions include companies that sell electronic design automation software such as Cadence Design Systems.
To understand this fully, we should note that, in addition to the nuclear equipment, the U.S. now requires licenses to ship ethane to China. Enterprise Product Partners, based in Houston, reported that its requests to complete three proposed cargoes of ethane to China, totaling approximately 2.2 million barrels, had not been granted. This raises important questions about the future of these international trade relations.
The facts underline the escalating tension between the U.S. and China, affecting various sectors – from nuclear equipment to rare metals. As the situation progresses, the need for accurate and timely information remains crucial.