US has Boeing parts, China has rare earth minerals: How Trump is gaining new leverage in trade talks

The latest US moves suggest that aviation supply chains could become another bargaining point as Washington and Beijing negotiate over rare earths, tariffs, technology and other areas of economic competition.

The Trump administration is taking steps to tighten US exports of aviation parts to China, seeking to use Beijing’s dependence on American aerospace suppliers as leverage in broader trade negotiations, Reuters reported citing people familiar with the matter.

The moves come as Washington seeks greater access to China’s supply of rare earth minerals, which are critical to industries including automobiles, semiconductors and aerospace.

According to Reuters, the US Commerce Department has slowed the approval of export licences for airplane parts destined for China in recent weeks. Officials are also considering new rules that could make it easier to restrict shipments of landing gear and other aircraft components.

US weighs tighter controls on aircraft parts

Reuters citing two people familiar with the matter reported that Commerce officials had expressed interest in an export regulation that would make it easier to restrict aircraft parts shipped to China.

A draft version of the regulation included a proposed licensing requirement for aviation hydraulic fluid supplied by US companies such as ExxonMobil, according to one of the sources.

The Commerce Department is also limiting the number of parts licensed for shipment to China's state-owned aircraft manufacturer COMAC, Reuters reported. The measure is intended to prevent the company from building up large inventories of US-made components.

The news outlet stated that the Commerce Department and the White House did not immediately respond to its requests for comment. China's embassy in Washington also reportedly did not immediately respond.

China seeks spare parts for 200 Boeing jets

The restrictions could have implications for Chinese airlines and Boeing, as China has sought several years' worth of spare parts for about 200 Boeing aircraft it agreed to purchase last spring, according to sources cited by Reuters.

The potential deal would represent Boeing's first major aircraft agreement with Chinese carriers in nearly a decade.

However, the US has been reluctant to provide guarantees for the spare parts, with officials viewing access to the components as potential leverage for securing future concessions from Beijing, the sources said.

It remains unclear where China's request for the additional spare parts currently stands.

Boeing said it remains committed to supporting Chinese airlines while complying with US export rules.

“Consistent with US export requirements, Boeing is committed to supporting Chinese airlines with the parts and services they need as we have done for decades,” a Boeing spokesperson told Reuters.

Rare earths at centre of US-China trade talks

The aviation measures come as rare earth minerals remain a major point of contention between Washington and Beijing.

China dominates important parts of the global rare earth supply chain, while the minerals are used in a broad range of products and technologies, including vehicles, chips and aerospace equipment.

Washington's reported efforts to restrict aviation supplies illustrate the two countries' broader reliance on each other's critical supply chains. While China has leverage through its control of rare earth materials, US aerospace suppliers have an important role in supporting Chinese commercial aviation.

Trump-Xi trade truce faces tougher negotiations

The reported aviation restrictions come shortly after US President Donald Trump and Chinese President Xi Jinping met in Washington.

The two countries agreed to reduce tariffs on a range of goods and extend a trade truce that had been due to expire on November 10. The extension gives negotiators until January 10, 2027, to address more difficult economic issues.

Reuters noted that manufacturers of thermal coating sprays used to protect jet engines continue to face difficulties linked to Chinese controls over rare earth materials, contributing to delays.

The latest US moves suggest that aviation supply chains could become another bargaining point as Washington and Beijing negotiate over rare earths, tariffs, technology and other areas of economic competition.

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