The United States has suspended licenses for nuclear equipment suppliers to sell components to China’s power plants, according to four sources familiar with the matter, marking a significant escalation in the ongoing trade dispute between the world’s two largest economies.
The suspensions, issued by the U.S. Department of Commerce, affect export licenses for parts and equipment used in nuclear power plant operations.
The move represents the latest expansion of restrictions that have targeted multiple sectors over the past two weeks as the U.S.-China trade war has shifted from tariff negotiations to supply chain disruptions.
The timing of the nuclear equipment restrictions comes as uncertainty surrounds whether a Thursday phone call between President Donald Trump and Chinese President Xi Jinping might influence the suspensions’ implementation.
Trade Truce Deteriorates
The restrictions follow the collapse of what appeared to be progress in trade negotiations. On May 12, the U.S. and China agreed to roll back triple-digit, tit-for-tat tariffs for 90 days. However, the truce between the economic superpowers quickly unraveled.
The U.S. has accused China of reneging on terms related to rare earth elements, while China has criticised the U.S. for “abusing export control measures.”
The Chinese government specifically objected to U.S. warnings that using Huawei Ascend AI chips anywhere in the world would violate American export controls.
Despite the tensions, Trump announced Friday that U.S. and Chinese officials would meet again on June 9, suggesting diplomatic efforts continue even as trade restrictions expand.
Broader Export Restrictions
Nuclear equipment represents just one sector affected by the recent wave of export controls. The U.S. now requires licenses to ship ethane to China, a requirement that has impacted major energy companies.
Houston-based Enterprise Product Partners said Wednesday that emergency requests to complete three ethane cargo shipments to China were rejected, blocking about 2.2 million barrels from leaving port.
The company also noted that the rule introduced on 23 May requiring butane export licences was later withdrawn.
Dallas-based Energy Transfer confirmed Tuesday it had been notified about the new ethane licensing requirement and planned to apply for emergency authorization.
The restrictions have also extended to the technology sector, with companies selling electronic design automation software, including Cadence Design Systems, facing new limitations.
Official Response
The U.S. Department of Commerce did not respond to requests for comment regarding the nuclear equipment restrictions. However, on May 28, a department spokesperson indicated the agency was reviewing exports of strategic significance to China.
The expanding scope of export controls reflects the increasingly complex nature of U.S.-China trade relations, moving beyond traditional tariff disputes to encompass strategic technologies and energy resources critical to both nations’ economic interests.
