In a major escalation of the ongoing U.S.-China trade conflict, the United States has suspended licenses for American companies to export nuclear power equipment to China, according to four sources familiar with the matter. The move, led by the U.S. Department of Commerce, marks the latest in a sweeping series of restrictions targeting critical supply chains and high-tech exports between the two economic superpowers.
The export license suspensions specifically impact American suppliers of nuclear plant equipment, including industry giants Westinghouse and Emerson Electric Co. These companies provide essential components, software, and tools for the safe and efficient operation of nuclear power plants globally.
While the Department of Commerce has not officially confirmed the details, a spokesperson previously stated that the agency was “reviewing exports of strategic significance to China,” and that some licenses have been suspended or altered pending further review.
The affected licenses are said to involve equipment valued in the hundreds of millions of dollars, according to two of the sources, signaling a significant disruption to ongoing commercial relationships in the nuclear energy sector.
Trade Truce Falters as Restrictions Expand
This latest round of export controls follows what appeared to be a tentative truce between the United States and China earlier in May. On May 12, both sides had agreed to roll back certain tariffs for 90 days, offering a brief moment of relief in a trade war that has dragged on for years.
However, relations quickly soured when the United States accused China of failing to honor key terms of that agreement, including provisions related to rare earth elements critical to high-tech manufacturing and the use of Huawei’s Ascend AI chips. China, in turn, accused the United States of abusing its export control mechanisms for geopolitical gain.
The suspension of nuclear export licenses comes amid a broader U.S. strategy to choke off advanced technology sales to China, citing national security and economic fairness. These moves have drawn sharp criticism from Beijing and alarm from multinational corporations caught in the crossfire.
Broader Impact: Supply Chain Disruption Across Industries
The nuclear sector is just one of several high-tech industries affected by this wave of restrictions. In the past two weeks, the Commerce Department has imposed new licensing requirements on hydraulic fluid exports, jet engines, electronic design automation software, and even certain energy exports such as ethane and butane.
Notably, GE Aerospace has been affected by license suspensions tied to jet engines destined for China’s COMAC aircraft program, a flagship national aviation initiative.
In the energy sector, Enterprise Product Partners and Energy Transfer, both Texas-based firms, reported difficulty obtaining emergency licenses for ethane shipments to China, totaling over 2 million barrels. Enterprise said a related restriction on butane exports was later withdrawn, but the uncertainty has already rattled energy markets.
U.S. Government Silent on Nuclear Move
While the U.S. Commerce Department has acknowledged its broader review of sensitive exports, it has not publicly commented on the suspension of nuclear licenses. Westinghouse and Emerson, whose products are widely used in nuclear reactors around the world, have also declined to respond to inquiries.
These license suspensions are significant because they involve technology that, while used for civilian energy purposes, can also have implications for nuclear proliferation and national security. The U.S. has long sought to maintain strict controls over who can access this equipment and under what terms.
Export licenses in the nuclear industry typically run for four years, specifying permitted quantities, recipients, and intended use. The sudden suspension of these permits has left companies scrambling for clarity, with no indication of when or if the authorizations might be reinstated.
China Responds: Calls for U.S. to Reverse ‘Negative Measures’
The Chinese government, through its embassy in Washington, issued a strong response. A spokesperson stated that President Xi Jinping had urged President Trump during a recent call to honor the May 12 agreement and to recognize China’s “earnest” efforts to comply.
“The U.S. side should acknowledge the progress already made, and remove the negative measures taken against China,” the embassy said in a statement.
China has also imposed its own export restrictions, particularly on rare earth metals that are vital to a host of global industries from electric vehicle manufacturing to consumer electronics. Although temporary export licenses were granted to supply certain American automakers, the move underscored how vulnerable the U.S. remains to supply chain bottlenecks in strategic materials.
With both sides hardening their stance, it’s unclear whether the upcoming June 9 trade meeting between U.S. and Chinese officials will yield progress. Trust appears to be eroding rapidly, and the increasing use of export controls signals a shift away from tariff-based disputes toward a more sustained decoupling of critical supply chains.
For now, companies like Westinghouse, GE Aerospace, and Enterprise are left in limbo caught between Washington’s geopolitical calculus and Beijing’s retaliatory instincts.
As the world watches the two economic giants square off, the global energy, aviation, and tech sectors are likely to face heightened uncertainty, higher costs, and delayed projects fallout from a trade war that’s morphing into a full-blown technology cold war.
