The US is tightening aircraft component exports to China, including licensing restrictions on critical parts and supplies, as Washington seeks greater leverage in negotiations over rare earth minerals, aviation trade, and broader economic issues.
The Trump administration has begun limiting aircraft component exports to China as part of a broader strategy to gain negotiating power over rare earth mineral access. The effort signals how Washington plans to use supply chain dependencies as leverage in upcoming trade discussions.
Commerce Department takes action
The Department of Commerce has slowed export licensing for airplane parts destined for China in recent weeks. Officials are also developing a new export rule that would make it simpler to restrict critical components like landing gear and aviation hydraulic fluid to Beijing.
Under the draft regulation, hydraulic fluid shipped by suppliers such as ExxonMobil would require new licensing approvals before export. Additionally, the Commerce Department has been capping the number of aircraft components licensed to China’s state-owned planemaker COMAC to prevent the company from building stockpiles.
Tensions over Boeing’s Chinese orders
China has requested several years’ worth of spare parts to support 200 Boeing aircraft that the country agreed to purchase in spring 2026. The US has declined to provide firm guarantees on those parts, viewing them as potential negotiating tools for future concessions.
Boeing stated it remains committed to supporting Chinese airlines with necessary parts and services in line with US export rules. Industry sources indicate the status of China’s spare parts request remains unclear.
Earlier restrictions and recent developments
The US imposed wider export controls on aircraft products in late spring 2025 as trade tensions intensified. Washington suspended licenses for GE Aerospace jet engines and Honeywell Aerospace navigation systems intended for COMAC. The administration also sent notifications to hydraulic fluid manufacturers that the product would fall under new export license requirements, though these restrictions proved temporary.
Trade negotiations resume
US and Chinese officials met in September 2026 in New York and Washington to address key economic matters between the nations, including rare earth mineral access, agricultural trade, and artificial intelligence regulation.
In early October 2026, the two countries extended their trade truce from its original expiration date of 10 November 2026 to 10 January 2027. This provides negotiators additional time to resolve more complex trade issues.
The aerospace sector has largely avoided the widespread tariffs Trump’s administration imposed across other industries and trading partners.
However, the sector continues to experience supply chain disruptions tied to geopolitical tensions, particularly regarding Chinese controls on rare earth materials needed for thermal coating sprays used in jet engine protection.
Earlier, China and the US agreed to a reciprocal tariff reduction covering about USD 60 billion of goods, following their extension of the bilateral trade truce to 10 January 2027.
