US Halts Nuclear Component Exports to China Amid Security Concerns

According to a recent report from Reuters, the U.S. government has halted licenses that permitted American companies to send components and equipment for nuclear power facilities to China. This move is notable as it directly impacts essential parts necessary for the functioning and upkeep of china’s nuclear energy sector.

The U.S. Department of Commerce recently issued these suspension orders, although they haven’t elaborated on the specifics regarding nuclear-related exports. A spokesperson mentioned on May 28 that certain exports deemed strategically important were under scrutiny.

In fact, some licenses had already been suspended or new requirements introduced during this review phase, with industry experts estimating that these affected licenses represent business transactions worth hundreds of millions of dollars.

Prominent players in the nuclear field like Westinghouse and Emerson are among those feeling the pinch.Westinghouse’s technology is utilized in over 400 reactors worldwide, while Emerson specializes in providing measurement instruments for the nuclear sector; however, both companies have not commented publicly on this situation.

Additionally, new export limitations have impacted suppliers such as GE Aerospace—specifically blocking shipments of jet engines intended for COMAC, a state-owned Chinese aircraft manufacturer—and also firms exporting ethane and butane to China.

Energy firms are also facing challenges due to these restrictions. For instance, Enterprise Product Partners from Houston reported delays in receiving approvals for urgent requests related to three cargoes of ethane destined for China—amounting to approximately 2.2 million barrels total. They noted that a separate butane license requirement imposed earlier was subsequently lifted but remains cautious about future approvals. Similarly, Energy Transfer based in Dallas has been informed about new licensing protocols concerning ethane exports and intends to pursue emergency clearance.

These export restrictions arose amid deteriorating trade relations between the U.S. and China. Although both nations had agreed on May 12 to pause their tariff conflict temporarily for three months, tensions escalated rapidly thereafter.

The U.S accused China of failing to uphold commitments regarding rare earth materials while Beijing retaliated by claiming Washington was weaponizing its export controls—especially following warnings about potential violations linked with Huawei’s Ascend AI chips globally.

As it stands now, it’s uncertain whether a recent conversation between President Joe Biden and President Xi Jinping will lead to any changes regarding the freeze on nuclear exports or other licensing matters moving forward.