The Trump administration has suspended some sales to China of critical US technologies, including those related to jet engines, semiconductors and certain chemicals and machinery. The move is a response to China’s recent restrictions on exports of critical minerals to the United States, a decision by Beijing that has threatened to cripple US company supply chains, according to two people familiar with the matter.

The new limits are pushing the world’s largest economies a step closer toward supply chain warfare, as Washington and Beijing try to flex their power over essential economic components in an attempt to gain the upper hand in an intensifying trade conflict.

Complicating trade wars

A growing standoff over critical supply chains could have significant implications for companies that depend on foreign technologies, including makers of airplanes, robots cars and semiconductors.

It could also complicate efforts to negotiate an end to a trade fight over the administration’s tariff policies. On May 12, negotiators from the two countries agreed to reduce the punishing tariffs they have imposed on each other for 90 days while negotiators sought a longer-term resolution.

Treasury Secretary Scott Bessent said at the time that “the consensus from both delegations is that neither side wanted a decoupling.” Yet the administration continues to target China with punitive measures.

Secretary of State Marco Rubio also announced Wednesday that the United States would “aggressively revoke” visas for Chinese students who study in critical fields or who have connections to the Chinese Communist Party.

Since their agreement to roll back tariffs in May, U.S. officials had expected the Chinese to relax restrictions they had imposed on critical minerals. The Trump administration does not appear to be pleased with China’s efforts.

In recent days, the Chinese have restarted some shipments of rare earth minerals and magnets, but they have been limited, one of the people said. American companies remain concerned about their access to critical Chinese supplies.

Chinese clapping back

In April, China suspended exports of a range of critical minerals and magnets, which are essential for automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The Chinese government said it had halted the shipments while drafting a new regulatory system.

Beijing’s moves were in response to Trump’s decision to sharply increase tariffs on China in early April, to a minimum of 145%, after China retaliated against his earlier tariffs. Trump had imposed levies on dozens of countries globally, citing their unfair trade practices, and warned other countries not to respond in kind.

The new ex U.S. restrictions appear to be part of a broader review within the Commerce Department of exports of strategic goods to China. The Bureau of Industry and Security, a division within the department, is in charge of granting companies licenses that allow them to export products that have military value or other strategic importance to the United States.

One person familiar with the matter, who declined to be identified to discuss private conversations, said the Commerce Department had suspended some licenses that allowed American companies to sell products and technology to COMAC, a Chinese state-owned aerospace manufacturer, for use in its C919 aircraft.

The Commerce Department did not immediately respond to a request for comment.

The C919, a plane comparable in size to the Boeing 737 or the Airbus A320, carried paying passengers for the first time in 2023. Many of the plane’s parts, including its engines and components necessary to power and control the aircraft, come from U.S. and European suppliers.

China is a long way away from producing enough planes to meet its needs and, analysts say, will continue to be dependent on Boeing and Airbus for planes, and companies such as GE Aerospace for jet engines, for many years to come.

The Trump administration also appears to have paused exports of software, sold by companies such as Cadence, Synopsys and Siemens, used to design computer chips.