The Trump administration has suspended critical technology exports to China, including jet engines, semiconductors, advanced design software, and specialized industrial equipment, in a move that significantly escalates trade tensions.

According to The New York Times, which cited two sources familiar with the matter, the decision comes in direct response to Beijing’s recent restrictions on rare earth mineral exports to the US, deepening an already volatile economic confrontation between the two global powers.

The tightening of export controls signals the deepening of a US-China supply chain war, with both superpowers leveraging their dominance in critical industries to gain a strategic advantage.

The growing tit-for-tat has immediate implications for global manufacturing sectors, including aviation, robotics, automotive, and chip production, and threatens to derail ongoing trade negotiations.

Export ban covers jet engines, chips, and design software

The US Commerce Department is reviewing export licenses for key technologies sold to China, effectively halting shipments to several sectors.

One of the immediate targets is COMAC, a state-owned Chinese aircraft manufacturer whose C919 jet relies heavily on American and European components. The C919, viewed as a competitor to Boeing’s 737 and Airbus’s A320, first entered service in 2023.

US companies have also been barred from exporting chip design software, developed by firms such as Cadence, Synopsys, and Siemens, to China. While the Biden administration had imposed narrower restrictions earlier, these broader semiconductor export controls mark a significant escalation under President Trump. 

China’s rare earth export freeze fuels strategic alarm

The administration’s decision comes in direct response to China’s restriction of rare earth mineral exports, announced in April. These minerals are critical to defense, green energy, and tech sectors. Beijing cited a need to “update regulatory frameworks,” but US officials see the move as deliberate retaliation.

Despite limited shipments resuming in May, long-term access remains uncertain. The embargo has heightened concerns in Washington about America’s strategic vulnerability, particularly in the event of worsening geopolitical tensions, as per the report. China previously employed a similar tactic against Japan in 2010 during a diplomatic dispute.

Although both sides agreed on May 12 to pause new tariff increases for 90 days, the tech standoff has continued to spiral. Treasury Secretary Scott Bessent noted that “neither side wanted a decoupling,” yet Washington has continued imposing aggressive measures.

Secretary of State Marco Rubio reinforced this approach on Wednesday, vowing to revoke visas for Chinese students tied to sensitive research fields or the Chinese Communist Party, a policy expected to widen under broader national security directives.

China pushes back, seeks European collaboration

Beijing has sharply criticized the US export restrictions, accusing Washington of violating trade norms and engaging in economic coercion. On Tuesday, Chinese state media reported that government officials met with domestic and European semiconductor firms to explain how they could apply for export licenses and maintain cooperation.

The Chinese Commerce Ministry released a statement asserting that “the global chip supply chain’s security is under threat” and vowed that China “resolutely rejects unilateralism and bullying.”

Despite Beijing’s heavy investments in developing its own tech base, China remains reliant on foreign semiconductor design tools and equipment. At the same time, the US and its allies are tightening restrictions on advanced AI chips and manufacturing tools.

As the standoff intensifies, both countries risk long-term damage to innovation, research, and global supply chain stability, the report stressed.

Industry experts warn that this economic confrontation may define the next phase of global trade, where access to high-tech tools becomes both a bargaining chip and a battleground.