Exclusive-US suspends licenses to ship nuclear plant parts to China, sources say
By Karen Freifeld and Fanny Potkin
(Reuters) -The U.S. in recent days suspended licenses for nuclear equipment suppliers to sell to China's power plants, according to four people familiar with the matter, as the two countries engage in a damaging trade war.
The suspensions were issued by the U.S. Department of Commerce, the people said, and affect export licenses for parts and equipment used with nuclear power plants.
Nuclear equipment suppliers are among a wide range of companies whose sales have been restricted over the past two weeks as the U.S.-China trade war shifted from negotiating tariffs to throttling each other's supply chains. It is unclear whether a Thursday call between U.S. President Donald Trump and Chinese President Xi Jinping would affect the suspensions.
The U.S. and China agreed on May 12 to roll back triple digit, tit-for-tat tariffs for 90 days, but the truce between the two biggest economies quickly went south, with the U.S. claiming China reneged on terms related to rare earth elements, and China accusing the U.S. of "abusing export control measures" by warning that using Huawei Ascend AI chips anywhere in the world violated U.S. export controls. After Thursday's call, further talks on key issues were expected.
The U.S. Department of Commerce did not respond to a request for comment on the nuclear equipment restrictions. On May 28, a spokesperson said the department was reviewing exports of strategic significance to China.
"In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending," the spokesperson said in a statement. The Chinese Embassy in Washington did not immediately respond to a request for comment.
U.S. nuclear equipment suppliers include Westinghouse and Emerson.
Westinghouse, whose technology is used in over 400 nuclear reactors around the world, and Emerson, which provides measurement and other tools for the nuclear industry, did not respond to requests for comment.
The suspensions affect business worth hundreds of millions of dollars, two of the sources said.
They also coincide with Chinese restrictions on critical metals threatening supply chains for manufacturers worldwide, especially America's Big Three automakers.
Reuters could not determine whether the new restrictions were tied to the trade war, or if and how quickly they might be reinstated. Department of Commerce export licenses typically run for four years and include authorized quantities and values.
But many new restrictions on exports to China have been imposed in the last two weeks, according to sources, and include license requirements for a hydraulic fluids supplier for sales to China.
Other license suspensions went to GE Aerospace for jet engines for China's COMAC aircraft, sources said.
The U.S. also now requires licenses to ship ethane to China, as Reuters reported first last week. Houston-based Enterprise Product Partners said Wednesday that its emergency requests to complete three proposed cargoes of ethane to China, totaling some 2.2 million barrels, had not been granted.
Enterprise said a May 23 requirement for a license to sell butane to China, in addition to the ethane, was subsequently withdrawn. Dallas-based Energy Transfer said it was notified on Tuesday about the new ethane licensing requirement, and planned to apply and file for an emergency authorization.
Other sectors that have been hit with new restrictions include companies that sell electronic design automation software such as Cadence Design Systems.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Diplomatic win for UK hosting US-China trade talks
Sky News understands that the Trump administration approached the UK government to ask if it would host round two of the US-China trade talks. This is a useful 'diplo-win' for the UK. The first round was held in Geneva last month. News of that happening came as a surprise. The Chinese and the Americans were in the midst of a Trump-instigated trade war. President Trump was en route to Saudi Arabia and suddenly we got word of talks in Switzerland. They went surprisingly well. US treasury secretary Scott Bessent and his Chinese counterpart He Lifeng, met face-to-face and agreed to suspend most tariffs for 90 days. But two weeks later, the Trump administration accused Beijing of breaking the agreements reached in Geneva. Beijing threw the blame back at Washington. On Wednesday, Donald Trump and Xi Jinping spoke by phone. The Chinese claimed this call was at the Americans' request. Either way, the consequence was that the talks were back on track. "I just concluded a very good phone call with President Xi of China, discussing some of the intricacies of our recently made, and agreed to, trade deal," President Trump said this week. From that call came the impetus for a second round of talks. A venue was needed. In stepped the UK at short notice. Beyond being geographically convenient, UK government sources suggest that Britain is geopolitically in the right place right now to act as this bridge and facilitator. The UK-China relationship is in the process of a "reset". Other locations, like Brussels or other EU capitals, would have been less workable. Crucially too, for the UK, this is also potentially advantageous as it seeks to get its own UK-US trade agreement, to eliminate or massively reduce tariffs, over the line. Talks on reaching the "implementation phase" have been near-continuous since the announcement last month, but having the American principals in London is a plus. Sideline talks are possible, but even the presence of the US team in the UK is helpful. Read more from Sky News:Man wrongly deported from US to El Salvador has been returned to face criminal chargesMore than 40 'narco-boat' drug smugglers arrested in major police sting For all the chaos that President Trump is causing with his tariffs, he has instigated face-to-face conversations as he seeks resets. Key players are sitting down around tables - yes, to untangle the trade knots which Trump tied, but this whole episode has pulled foes together around the same table; it has forced relationships and maybe mutual understanding. That's useful. And for this next round, between superpowers, the UK is the host. Also useful.
Yahoo
33 minutes ago
- Yahoo
Petrobras targets Africa for oil exploration region outside Brazil
Petrobras, the Brazilian state-run oil company, is setting its sights on Africa as its primary region for oil exploration activities outside its home country, reported Reuters, citing the company's CEO Magda Chambriard. She detailed the strategic intent to expand the company's presence in Africa, highlighting the welcoming approach from the Ivory Coast and interest from other African nations. The Ivory Coast has recently paved the way for Petrobras by offering priority access to nine exploratory offshore blocks. This gesture, described by Chambriard as rolling out the "red carpet", signifies a significant opportunity for the company to delve into deep and ultra-deep waters. Chambriard said: "We are experts in the eastern margin of Brazil. The correlation between Brazil and Africa is unequivocal, so we need to go to Africa." Nigeria, Angola and Namibia have also shown eagerness to collaborate with Petrobras, further cementing Africa's role in the company's global strategy. Petrobras' growing interest in international oil assets, particularly in Africa, comes as the company aims to augment its reserves amid environmental permit delays for new drilling projects off the coast of the Amazon rainforest. Moreover, Petrobras is looking to participate in an oil block auction in India in July as part of its broader exploratory ambitions. Under past leadership, Petrobras concentrated on Brazil's pre-salt fields, which are known for their high productivity. Now, Chambriard is tasked with balancing the economic aspirations of President Luiz Inacio Lula with the necessity of delivering investor returns and navigating the complexities of a global market with lower oil prices. Despite challenges in obtaining environmental permits for drilling in the Amazon's Foz do Amazonas region, Chambriard is optimistic about clearing the final hurdle for a permit by the second half of July. Petrobras has already initiated its plans in Africa, acquiring stakes in offshore oilfields in South Africa and São Tomé and Príncipe in 2023 and early 2024, respectively, with drilling expected to commence this year. Although Petrobras faced a setback when outbid by TotalEnergies for a share in Galp Energia's Mopane field discovery off Namibia's coast, Chambriard remains hopeful for future opportunities, stating: "We hope to be invited" to develop the field. "Petrobras targets Africa for oil exploration region outside Brazil" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
40 minutes ago
- Yahoo
The only ‘Made in America' smartphone maker has a message for Apple about manufacturing in the Trump tariff era
Todd Weaver has an important message for Apple as it faces growing demands by President Donald Trump to reshore some of its smartphone production: Don't listen to the conventional wisdom. Experts have long said that manufacturing iPhones in the U.S., rather than Asia, as Apple does, would be logistically impossible and ridiculously expensive. But Weaver argues companies can indeed do it successfully, and at a similar or only slightly higher cost—if given several years to navigate the inevitable complications. Weaver should know: His startup, Purism, is among the few, if not the only business, that assembles smartphones in the U.S. In fact, the U.S. pedigree is the main selling point of his company's Made in America device, the Liberty Phone. 'It is challenging to do this in the U.S.,' Weaver acknowledges. 'It's probably the reason I'm the only one.' And yet, he says his company has managed to make it work and has been profitable for the last two years—a real world example of what's possible on a hot-button topic in which political talking points and vested interests often dominate the debate. President Donald Trump recently put U.S. smartphone production in the spotlight as part of his global trade war. On May 23, he used social network Truth Social to publicly attack Apple for importing iPhones into the U.S., rather than making them domestically, and then threatened the company with a 25% tariff if it continued to do so. Whether any of the import taxes will become permanent is unclear given Trump's whiplash decision-making and court challenges by third parties. Still, Apple has long assembled its iPhones overseas, mainly in China, and has resisted relocating any of that production to the U.S. In April, when Trump announced his tariffs, Apple went so far as to shift the sourcing of most U.S.-bound iPhones to India, which faced lower import taxes. U.S. assembly was never publicly mentioned as a possibility. In the past, Apple CEO Cook explained the reluctance by saying the abundance of skilled labor and top-notch suppliers overseas would be difficult to reproduce at home. Weaver's company, of course, is no Apple, which has sold more than 2 billion iPhones globally since introducing the first models in 2007. The devices unleashed a new era in the tech industry in which mobile devices became the prime focus. Purism, in contrast, has sold just tens of thousands of phones since debuting its first model in 2018, according to Weaver. And the company is barely-known outside the world of tech nerds. Its Liberty Phone, manufactured near San Diego, comes with U.S.-made electronics installed on a metal chassis from China. It retails for $1,999. Another phone, the Librem 5, is mostly the same design, except it's made in China with Chinese parts, and costs $799. The company also produces tablet computers, laptops, and servers. Purism pitches its Made in America device as more secure and privacy friendly than those from major manufactures like Apple. Because all the critical parts and assembly are domestic, it's easy to verify that they haven't been tampered with by a foreign adversary that wants to snoop or stuff them with explosives. The phones also run on a Linux-based open source operating system. Anyone with technical know-how who is worried about the security can review the code—unlike with more popular phones, which come with operating systems that can't be easily inspected. Additionally, Purism's phones come with three kill switches that lets users physically disconnect their device from cell service, Wi-Fi and Bluetooth, along with its microphone and camera. When turned on, the switches sever the electrical circuit to the features they control and make it impossible for them to be accessed by hackers, Weaver said. Toggling on Airplane Mode, as users often do on more mainstream phones, is less secure, he said, because it's a purely software feature that doesn't cut power to the device's chips. Customers who are especially security conscious can pay extra to have their devices shipped with 'tamper evident tape' on the packaging, among other options, to flag any monkey business during transit. Purism's biggest customers are government agencies, many of which require high security, and individual consumers. The company's clients, Weaver said, include the FBI and the House Select Committee on Intelligence. Weaver said the cost of manufacturing the Purism's two phones is largely the same, despite one being made overseas and the other domestically. The phone that's made in China costs around $600 for parts, manufacturing, and assembly while the U.S.-made one comes in at $650. 'Producing goods in China vs. the U.S. is the same plus or minus 10%,' said Weaver, based mostly on automation. The difference between what Purism charges customers for its two phones is partly due to the higher profit margin the company collects for its U.S.-made device. People who want stronger security are often willing to pay extra for it, Weaver said. It also covers the extra overhead from some customers wanting to verify that Purism's supply chain is secure and the small additional cost of U.S. manufacturing. Purism's assembly line is in Carlsbad, Calif., where up to a dozen workers put together devices. The area is home to a pool of skilled labor thanks to the local defense industry and manufacturing for other mobile carriers. That relatively modest assembly line is a major contrast to the factories that make iPhones, operated by contract manufacturers, mostly in China. Those facilities can be the size of several football fields and employ over 100,000 people who work around-the-clock shifts. Weaver said the U.S. is at a huge disadvantage to China when it comes to skilled workers, who make up a significant part of the workforce in smartphone factories. The only way to reverse the shortage and lay the groundwork for companies to reshore their production is to encourage more people to learn skills that are useful in the manufacturing process, he said. 'If you go over to China you can find buildings and buildings of thousands of electronics engineers. If you look here, you can find maybe five total,' Weaver said. Apple, for example, would risk a catastrophe if it suddenly, in 2026, needed to ramp up staffing in the U.S. to produce millions of iPhones, he said. Training enough people for such a massive undertaking would take years. Weaver said Purism, founded in 2014, took several years to develop its domestic supply chain. The company's small size means it only needs limited quantities of components, which makes it impossible to achieve the economies of scale that come from producing huge numbers of devices. Manufacturing in the U.S. also comes with higher labor costs than in China. But with the help of automation, those extra costs can be kept to a minimum by reserving human labor for tasks performed after production is complete, such as soldering, assembly, repairs, and testing. Apple, on the other hand, would need vast amounts of components to keep its assembly line humming. While the company would likely be able to cut deals with domestic suppliers for most iPhone parts, some, such as high-quality cameras, may be impossible to quickly source in the U.S. and it would therefore have to import them, Weaver said. One analyst has said iPhones could end up costing $3,500 if made in the U.S., to account for the extra costs and hassles. Weaver agrees that it would cost Apple substantially more to produce iPhones in the U.S., if it had to move production quickly. But given enough time, Apple could substantially reduce the cost after developing a new supply chain, finding enough workers, and by relying on extensive automation. For Apple, opening a domestic manufacturing plant would therefore need to be a years' long process, Weaver said. That's why he criticized Trump's tariffs for taking effect almost immediately. Yes, many of those tariffs have since been delayed. But the takeaway for businesses is that they can't plan ahead. And yet, that's exactly what's required for something as complex as shifting manufacturing to the U.S. Trump's tariffs would be far more effective if phased in over many years, Weaver said. In that scenario, companies would have a clear and increasing incentive to reshore production—without being punished right off the bat. Weaver argues his U.S. manufacturing effort is already paying off and that it will gain momentum over time. He hopes the recent scandal involving U.S. officials using the chat app Signal to discuss a military strike against Yemen, and then accidentally inviting a journalist to join them, will help lift sales by encouraging the federal government to focus more on security. Weaver wouldn't get into the specifics of Purism's financials other than to say it has millions in annual revenue and turned profitable in 2023. The Liberty Phone is its biggest seller. Wayne Lam, an analyst with market research firm TechInsights, gave a mixed take on Purism's prospect. In an email, he said: 'They can be a successful niche player, but the odds of success are lower thanks to the bigger brands. They won't be able to compete in the consumer market but government/enterprise/military are all niche markets they can address.' To fund the expansion of his business, Weaver is trying to raise additional investment after taking in $16 million in funding over the years. Some of that money would go to fixing a shortcoming with his phones. Because they don't use Apple's iOS or Google's Android operating systems, they are incompatible with many of the most popular mobile apps like Uber. To get such apps work on its devices, Purism must make technical tweaks for each one. Purism can at least claim one small advantage over the giant companies that dominate the smartphone industry. If Trump's tariffs become permanent, it won't feel much impact from its U.S.-made phone, while the big players and their foreign-made devices could be hammered. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
