New Delhi, June 9, 2025 – As US–China trade frictions intensify, the US Department of Commerce has halted export licenses for a broad range of nuclear-power components destined for China. The suspension, which affects reactor valves, steam-generator modules, and digital control systems, arrives just weeks after a nominal tariff truce collapsed, and signals a shift from tariff skirmishes to strategic supply-chain controls.
Export Suspension Details
In late May, US officials quietly paused applications and revoked standing approvals for nuclear-equipment exports to Chinese reactor builders. Major suppliers—Westinghouse Electric, Curtiss-Wright, and Emerson Electric among them—now face uncertainty over hundreds of millions in pending orders.
According to industry insiders, the Commerce Department flagged these exports for enhanced national-security review. While some shipments will simply be delayed, others may never clear the new compliance hurdles. The move underscores Washington’s growing concern about technology transfer as China accelerates its nuclear-power expansion.
Impact on Sino-American Trade
Although nuclear components represent a small slice of overall US-China trade, the implications are far-reaching.
- Chinese Reactor Projects: Delays in critical parts threaten to stall new reactor startups—China added 55 GW of nuclear capacity in 2021–24, relying heavily on Western technology and standards.
- US Suppliers: With a combined export tally of over $400 million in 2024 (see chart), US manufacturers may need to seek alternative markets or retool product lines.
- Reciprocal Measures: Beijing has warned it may restrict rare-earth exports, a move that could unsettle global electronics and renewable-energy supply chains.
Between 2019 and 2024, US exports of nuclear-power parts to China climbed steadily—from $300 million to $420 million—reflecting growing bilateral cooperation in civil nuclear technology. The 2025 export suspension breaks that trend and injects uncertainty into future partnerships.
Strategic Context
The suspension follows a pattern of export-control escalation:
- May 12, 2025: A 90-day tariff cease-fire is agreed but quickly falters over mutual compliance disputes.
- May 28, 2025: The Commerce Department announces tighter reviews on “strategic technology” exports—including semiconductors, aerospace components, and now nuclear parts.
- June 1, 2025: Formal notice of license suspensions is delivered to top US nuclear suppliers.
US officials argue that restricting advanced reactor equipment is necessary to prevent unintended contributions to foreign weapons-grade research. Critics counter that broad export curbs undermine commercial ties and risk retaliation.
Outlook
With an anticipated call between Presidents Biden and Xi later this week, there is hope for diplomatic de-escalation. However, industry analysts caution that once strategic-export controls are invoked, they tend to become entrenched. US firms are now evaluating contingency plans—diversifying into South American, Middle Eastern, and Southeast Asian markets to offset lost Chinese business.
For China, the suspension may accelerate efforts to develop indigenous reactor designs and domestic suppliers, potentially reshaping the global nuclear-technology landscape over the coming decade.
