March 30, 2020

Trump Administration Considering Halting Sales of Aircraft Parts to China

That integration, they say, is more difficult to build or reverse engineer, and copy.

But officials in the Trump administration and elsewhere fear that China might eventually develop the ability to reverse engineer G.E.’s technology.

Concerns have risen among officials in the National Security Council, the Defense Department and the State Department about whether the United States should be supporting China’s efforts to develop indigenous aircraft.

Stopping such licenses, however, would be a big financial hit to companies like G.E.

Officials also plan to discuss at the Feb. 28 policy meeting whether to expand the scope of their restrictions on Huawei.

The administration placed the company on a blacklist last May that prevented products made in America from being shipped to the country. But many of Huawei’s suppliers are global companies, and companies like Micron and Qualcomm instead switched to selling the Chinese company products from their overseas operations.

The rule change would clamp down on shipments of products made overseas with American components, so that only foreign-made products with less than 10 percent of American parts could be shipped to the company, down from 25 percent of specific types of restricted content before.

Some officials in the Defense Department had pushed back against those changes, arguing that they could undermine American technological development by cutting down on a vast source of revenue that the tech industry depends on to fund its research and development. The American military buys much of the technology that goes into military devices from the private sector.

But recently, other Pentagon officials including Mark T. Esper, the defense secretary, and John C. Rood, the under secretary of defense for policy, spoke up to overrule those objections, with the support of some officials in the Commerce Department.

Article source: https://www.nytimes.com/2020/02/15/business/economy/trump-administration-aircraft-china.html?emc=rss&partner=rss

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