Another US-China clash: Nuclear power plant equipment export licenses suspended

The US Department of Commerce has suspended export licenses authorizing the delivery of equipment to Chinese nuclear power plants, Reuters reported on Friday, citing sources.

In the past two weeks, restrictions on sales have also been extended to other companies in the U.S. The U.S.-China trade war is no longer about tariffs, but about restricting each other's supply chains, the agency stressed.

The U.S. Department of Commerce and the Chinese Embassy in Washington did not respond to requests for comment on the suspension of licenses for power plant equipment suppliers.

On May 28, a U.S. Department of Commerce spokesman said the department was conducting a review of strategic exports to China. "In some cases, the Department of Commerce has suspended existing export licenses or imposed additional licensing requirements during the review," the spokesman said.

U.S. suppliers of nuclear equipment include Westinghouse and Emerson. The companies also declined to comment on the matter.

Two Reuters sources stressed that the restrictions affect businesses worth hundreds of millions of dollars.

The restrictions come amid China’s crackdown on so-called critical metals, which threaten the supply chains of manufacturers around the world, including the U.S. auto sector.

It is not known whether Thursday's conversation between the leaders of both countries - Donald Trump and Xi Jinping - will affect the restrictions introduced in the US, the agency noted.

Trump called his phone call with the Chinese leader “very good” and said the U.S. and Chinese teams are scheduled to meet again soon to discuss trade. He also said after the call that “there should be no further questions about the complexity of rare earth products.”

The rare earths issue, which Trump mentioned in his tweet, has been at the center of the current trade dispute with the U.S. and China. Beijing, which controls much of the supply chain and processing of these materials, imposed additional restrictions on the export of seven minerals needed for advanced electronics in response to U.S. tariffs on Chinese goods. Despite a temporary truce in the trade war between the two powers, those restrictions remained in place, irritating the U.S. president and accusing him of violating a temporary agreement with China.

From Washington Natalia Dziurdzińska (PAP)

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