The Trump administration has suspended certain sales in China of critical American technologies, including those linked to jet engines, semiconductors and certain chemicals and machines. This decision is a response to recent China restrictions on exports of critical minerals to the United States, a Beijing decision that threatened to paralyze the supply chains for American companies, according to two people familiar with the issue.
The new limits push the biggest economies in the world by getting closer to the war of the supply chain, while Washington and Beijing try to bend their power over the essential economic components to try to gain the upper hand in an intensifying trade conflict.
A growing confrontation on critical supply chains could have significant implications for companies that depend on foreign technologies, including manufacturers of aircraft, robots, cars and semiconductors.
This could also complicate efforts to negotiate the end of a commercial struggle concerning the pricing policies of the administration. On May 12, negotiators of the two countries agreed to reduce the punistent prices that they imposed each other for 90 days while the negotiators asked for a longer -term resolution.
Scott Bessent, the secretary of the Treasury, said at the time that “the consensus of the two delegations is that none of the two parties wanted a decoupling”. However, the administration continues to target China with punitive measures. Secretary of State Marco Rubio announcement On Wednesday, the United States “would aggressively revoke” visa for Chinese students who study in critical fields or who have links with the Chinese Communist Party.
Since their agreement to retreat the prices in May, US officials have expected the Chinese to relax the restrictions they had imposed on critical minerals. The Trump administration does not seem to be satisfied with the efforts of China. In recent days, the Chinese have restarted certain expeditions of minerals and rare earth magnets, but they have been limited, said one of the people. American companies remain concerned about their access to critical Chinese supplies.
