US slows aircraft-part exports to China as Trump seeks trade leverage, sources say
XLI•The Commerce Department has slowed export licensing for aircraft parts bound for China and is weighing a draft rule that could ease restrictions on landing gear and other parts, sources said. The measures are intended to give the administration leverage in trade negotiations.
1. Licensing slows
The Trump administration has taken steps to use China’s reliance on US aviation suppliers as leverage in trade negotiations, people familiar with the matter said. The Commerce Department slowed export licensing for airplane parts bound for China in recent weeks and has limited the number of parts licensed for shipment to state-owned planemaker COMAC to prevent stockpiling, sources said.
2. Possible new restrictions
Officials have expressed interest in an export regulation that could make it easier to restrict landing gear and other aircraft parts shipped to China. A draft version included a new licensing requirement for aviation hydraulic fluid shipped by US suppliers such as ExxonMobil, one source said.
3. Boeing parts request
China has sought several years’ worth of spare parts for 200 Boeing jets it agreed to purchase last spring, sources said. The US has been reluctant to provide guarantees, viewing the parts as possible leverage for future concessions. Boeing said it is committed to supporting Chinese airlines with the parts and services they need, consistent with US export requirements.
