Latest news with #Comac
South China Morning Post
a day ago
- Business
- South China Morning Post
US export controls: a delay, but not a grounding, for China's aircraft engines
Washington's technology-export restrictions targeting Chinese plane makers this week will delay China's jet engine indigenisation process in the near term, but any setback will only harden resolve in Beijing for tech self-reliance to test and launch a home-grown engine, analysts said on Friday. Advertisement United States officials have reportedly suspended some sales of technologies linked to jet engines that could be built for Chinese state-owned Commercial Aircraft Corporation of China's (Comac) civilian aircraft. China's Ministry of Foreign Affairs pushed back at the US engine controls on Friday, with spokesman Lin Jian accusing the US of 'maliciously blocking and suppressing China'. 'We firmly oppose this and will resolutely safeguard our legitimate rights and interests,' Lin said at a regular news briefing. Analysts said China will devote more resources to develop a home-grown jet aircraft engine within the next two to three years, while the giant Shanghai-based manufacturer that aims to someday rival multinationals Airbus and Boeing for world market share may be forced to slow the production of aircraft. Advertisement China's C919, its first single-aisle passenger jet, has been in commercial operation for just two years.
Yahoo
2 days ago
- Business
- Yahoo
Trump Just Hit China's Jet Dream Where It Hurts -- GE Engines Now in Limbo
The U.S. has just turned up the heat on China's aviation ambitions. According to the New York Times, the Trump administration has blocked the export of critical jet engine parts and technology to China, directly hitting the engines powering the country's flagship C919 passenger jet. The move suspends key licenses that allowed GE Aerospace (NYSE:GE) to supply LEAP enginesbuilt through its joint venture with France's Safranto state-owned Comac. A spokesperson for the Commerce Department confirmed it's now reviewing exports of strategic significance to China, adding that some licenses are being paused or hit with new requirements during the review. Warning! GuruFocus has detected 7 Warning Sign with GE. This could be a serious problem for China's push to build a homegrown alternative to Boeing and Airbus. Comac has reportedly stockpiled enough GE-Safran engines to keep production rolling for now, but if the export pause drags on, that cushion could vanish fast. GE didn't comment, and neither did Comac, but the broader message from Washington is clear: China's access to high-end Western techespecially in critical sectors like aviation and semiconductorsis no longer guaranteed. This follows a broader U.S. crackdown on chip design software and other tools China needs to compete globally. For investors, the ripple effects could extend beyond GE. Any U.S. company with deep exposure to Chinaespecially in sectors labeled strategicmay want to brace for more regulatory headwinds. Safran's position as a European partner adds another layer of complexity. Could we see future supply chain fragmentation in global aerospace? Possibly. What's certain is this: the U.S.-China tech war just moved from semis to skiesand this round might ground more than just planes. This article first appeared on GuruFocus.
South China Morning Post
2 days ago
- Business
- South China Morning Post
As rising US-China tensions target tech, was the Geneva deal just a flash in the pan?
Economic tensions between the US and China are rising under the weight of tariffs and spreading into areas where it is harder to reach a consensus – namely, advanced technology – analysts say in the wake of Washington's reported moves to pause exports of products and technologies related to semiconductor design and jet-engine manufacturing to China. Advertisement The US Department of Commerce has told American electronic design automation firms – including Cadence, Synopsys and Siemens EDA – to stop supplying their technology to China, according to a Financial Times report, citing people familiar with the matter. Meanwhile, Washington has suspended some licences that allowed American companies to sell products and technology to China's state-owned aerospace manufacturer, Comac, that could be used to develop the home-grown C919 aircraft, The New York Times reported, also citing anonymous sources. The move was made in response to China's export controls on critical minerals , it said. 'For US-China relations, this poses a threat in terms of undermining the Geneva ceasefire,' said Nick Marro, principal economist for Asia and lead analyst for global trade at the Economist Intelligence Unit, referring to high-stakes bilateral talks that were held earlier this month in Switzerland and resulted in a temporary pause in their tit-for-tat tariff war 'We are increasingly seeing US-China frictions migrate away from tariffs and into more difficult areas of the economic relationship,' Marro said. The decoupling of US-China tech sectors will be prolonged and increasingly complex, regardless of the state of tariff negotiations Dan Wang, Eurasia Group
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First Post
2 days ago
- Business
- First Post
Big blow to Chinese plane-makers as Trump bars export of critical jet parts, technology
The US Commerce Department has suspended licenses of US firms that allowed export of critical products and technology to state-owned Commercial Aircraft Corp of China Ltd read more A Comac C919 flies during an aerial display at the Singapore Airshow at Changi Exhibition Centre, in Singapore, February 20, 2024. Source: Reuters In a major setback to China's plane-making industry, the Donald Trump administration of the US has blocked the export of critical US jet parts and technology to the communist country. According to a New York Times report, the US Commerce Department has suspended licenses of US firms that allowed export of critical products and technology to state-owned Commercial Aircraft Corp of China Ltd (Comac). Earlier, the Commerce Department confirmed to Bloomberg that it was reviewing 'exports of strategic significance to China.' STORY CONTINUES BELOW THIS AD 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending,' the department said in a statement. Why is the move a setback for China? The Comac, China's government-backed plane-maker, relies on American-made GE Aerospace engines for manufacturing its C919 planes. USA's fresh restrictions are not likely to create supply chain issues for Comac immediately as the firm had already stockpiled engines to build dozens of planes this year, reported Bloomberg. However, the Trump administration's move is poised to hurt the firm's business prospects in long term. China-US trade war The latest move by the Commerce Department is a part of an array of challenges that Beijing faces in its trade tensions with the world's largest economy. China has repeatedly called American sanctions on Chinese goods 'wrongful' and called on Washington to cancel them. On Wednesday, as a US court blocked Trump's sweeping reciprocal tariffs on its trading partners, Beijing responded by saying 'trade wars have no winners'. Global markets have been in chaos since Trump's tariff announcements, followed by his sudden reversals and pauses as foreign governments scrambled to negotiate. The turmoil worsened due to a prolonged trade war between the world's two economic giants. They slapped massive tariffs on each other, peaking at a 145 per cent US tax on Chinese imports and a 125 per cent Chinese tax on American goods. The two nations have since called a truce, with US tariffs on China dropping to 30 per cent and Chinese tariffs on some US imports falling to 10 per cent.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
US suspends engine sales to Chinese planemaker Comac
Comac is developing its own commercial planes to compete with dominant planemakers. (EPA Images pic) WASHINGTON : The US has suspended some sales to China of critical US technologies, including those related to jet engines to Chinese state-owned aerospace manufacturer Comac, the New York Times reported today. Comac is developing its own commercial planes to compete with dominant planemakers Airbus and Boeing, but China does not yet have suitable homegrown engines and remains reliant on imports. Citing two people familiar with the matter, the New York Times said the move was in response to Beijing's recent restriction on exports of critical minerals to the US. The newspaper said the department had suspended some licences that allowed US firms to sell products and technology to Comac to develop its C919 aircraft, according to one person familiar with the matter. The US commerce department told Reuters in a statement that it was reviewing exports of strategic significance to China. 'In some cases, commerce has suspended existing export licenses or imposed additional licence requirements while the review is pending,' it said. Aviation equipment is among the sectors affected, three people familiar with the matter told Reuters. Comac did not immediately respond to a request for comment. A spokesman for the Chinese embassy in Washington told Reuters: 'China firmly opposes the US's overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China.' Comac's single-aisle C919 plane is made in China but many of its components come from overseas, including its LEAP-1C engine made by a joint venture between GE Aerospace and France's Safran. GE Aerospace did not offer an immediate comment. The C919 – designed to compete with best-selling narrow-body models from Airbus and Boeing – entered service in China in 2023 after winning domestic safety certification in 2022. Eighteen C919s are currently in operation, according to aviation intelligence provider ch-aviation, and they fly only within mainland China and Hong Kong. GE was first granted a license to sell the C919's LEAP engines to Comac in 2014. Early in 2020, the US weighed whether to deny GE's latest license request for the engine, but president Donald Trump's first administration granted it. 'I want China to buy our jet engines, the best in the World,' Trump said on social media in February that year. 'I want to make it EASY to do business with the United States, not difficult.'
