US keeps trade de-escalation with China, lifts ban on aircraft engine exports

A source familiar with the matter said the United States has notified GE Aerospace that it can resume aircraft engine shipments to China’s Comac Corporation, a further sign of easing trade tensions between the United States and China, which also included concessions from Beijing on rare earths exports.

This week, the United States also lifted restrictions on exports of products to China, including to chip design software developers and ethane suppliers, a move that suggests trade talks between the two countries are moving in a positive direction.

The licenses for several exports had been suspended several weeks ago as part of a series of tit-for-tat measures between the world’s two largest economies, according to Reuters.

The GE Aerospace licenses affect engines sold to Comac, a state-owned Chinese aircraft manufacturer seeking to compete with major global aerospace companies like Airbus and Boeing.