The US has halted the issuance of export licences for companies supplying nuclear equipment to China’s power plants, amidst an escalating trade conflict between the two nations, as reported by Reuters.
The suspensions were communicated by the Department of Commerce and impact licences for the export of parts and equipment essential for nuclear power operations.
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The decision is one among several measures in recent weeks that target supply chains between the two nations, reflecting a shift from tariff negotiations to direct action against each other’s industries.
Previously, both countries had agreed on 12 May 2025 to for the suspension of aggressive reciprocal tariffs for three months. However, this “ceasefire” quickly deteriorated as disagreements emerged over various issues.
The US accused China of backtracking on commitments concerning rare earth elements, while China charged the US with “exploiting export control measures,” particularly in relation to global usage warnings over Huawei’s Ascend AI chips.
President Trump announced that further talks are scheduled for 9 June following a breakdown in negotiations.
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By GlobalDataRequests for comments on the new restrictions have not been addressed by the US Department of Commerce.
On 28 May, a representative stated that exports deemed strategically significant to China were under review. “In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while this review is ongoing,” the spokesperson said.
Companies such as Westinghouse and Emerson have yet not commented on how these suspensions might affect their global operations.
Two sources told the media outlet that businesses stand to lose hundreds of millions due to these suspensions.
Liu Pengyu, representative from the Chinese Embassy in Washington stated that during a call with Trump, Chinese President Xi Jinping highlighted the importance of both parties honouring the agreement made in Geneva on 12 May.
Liu mentioned in a statement on Friday 6 June that China has been “earnestly” implementing the terms of the agreement and that “the US side should recognise progress made thus far and retract any adverse actions taken against China.”
